INTERNATIONAL CURRENCY BUZZ :
- Forex – GBP/USD rises despite weak U.K. construction data
- Forex – Yen surges to 3-week high as Japan approves stimulus package
- Forex – Aussie holds steady after RBA rate cut, kiwi moves higher
EUR/USD is currently trading with a bullish bias. Yesterday, the pair broke above a key resistance level 1.1152, headed long but has currently retraced to the just broken level. Now is the most appropriate time to look for potential low risk buy opportunities towards 1.1239 or even higher. This view can only be invalidated in case the price end up closing below 1.1152. A clear bearish breakout below 1.1152 will culminate into a possible bearish price rally towards 1.1112 or even lower. This pair should be traded alongside EUR/GBP, GBP/USD and EUR/HKD. These pairs have a strong positive correlation of up to +0.85 and will have a similar price action during this intraday.
The pound rose against the U.S. dollar on Tuesday, despite the release of downbeat U.K. construction activity data, as lower expectations for a U.S. rate hike this year and downbeat U.S. data continued to weigh broadly on the greenback. GBP/USD hit 1.3238 during European morning trade, the session high; the pair subsequently consolidated at 1.3218, gaining 0.33%. Cable was likely to find support at 1.3070, the low of July 27 and resistance at 1.3305, the high of July 29.Research firm Markit and the Chartered Institute of Purchasing & Supply (CIPS) said their U.K. construction purchasing managers’ index fell to 45.9 in July from the previous month’s reading of 46.0.Economists had expected the index to drop to 43.8 in last month.The data came a day after Markit said its U.K. manufacturing PMI fell to 48.2 last month from a reading of 52.1 in June.
- BUY GBP/USD ABOVE 1.3260 TGT 1.3280 1.3310 SL 1.3230
- SELL GBP/USD BELOW 1.3160 TGT 1.3130 1.3100 SL 1.3190