5Aug

IForex Market Trading Signals and News – 05 August 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex – Sterling hits day’s lows after BoE cuts rates, up QE
  • Forex – GBP/USD slips lower ahead of BoE decision
  • Forex – Aussie edges higher, kiwi holds steady vs. greenback

EUR/USD
EUR/USD is currently trading with a bearish bias. Yesterday, instead of going long as previously forecasted, the pair rallied to the lower side and ended up closing below a key support level 1.1159. Although we expect further movements to the lower side, we are waiting for minor retracements to the upper side to give us low risk sell opportunities. This view remains valid as long as the pair trades below 1.1159, a clear breakout above this level may invalidated the anticipated upward rally. Trade Euro alongside EUR/HKD, GBP/USD and AUD/USD. These pairs have a strong positive correlation of up to +0.96 and will have a similar price action during this intraday.

GBP/USD
The pound slipped lower against the U.S. dollar on Thursday, as investors remained cautious ahead of the Bank of England’s policy decision, due later in the day, amid mounting expectations for a rate cut.GBP/USD hit 1.3279 during European morning trade, the session low; the pair subsequently consolidated at 1.3301, shedding 0.18%.Cable was likely to find support at 1.3169, the low of August 2 and resistance at 1.3480, the high of July 15.The BoE was expected to lower interest rates by 25 basis points later Thursday, as a string of downbeat economic reports from the U.K. recently sparked concerns over the outlook for growth.Meanwhile, the dollar remained mildly supported after payroll processor ADP said on Wednesday that the U.S. private sector added 179,000 jobs last month, surpassing expectations for an increase of 170,000.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.3360 TGT 1.3380 1.3410 SL 1.3330
  • SELL GBP/USD BELOW 1.3060 TGT 1.3030 1.3000 SL 1.3090

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