INTERNATIONAL CURRENCY BUZZ :
- Forex – GBP/USD falls to fresh 1-month lows on U.K. data
- Forex – Aussie, kiwi move lower vs. broadly stronger greenback
- Forex – Aussie down after weak NAB surveys, China prices for July
EUR/USD is currently trading with a bearish bias. Yesterday, Euro dropped sharply but could not close below 1.1073. The level 1.1073 is a key short term support level and will require a bit of bearish pressure to break below. But as long as the level protects the lower side we expect a possible bullish rebound from this level to go long with an ideal target at 1.111 and 1.1159. This pair should be traded alongside AUD/USD, GBP/USD, NZD/USD and EUR/HKD. These pairs have a strong positive correlation of up to +0.93 and will have a similar price action during this intraday.
The pound fell to fresh one-month lows against the U.S. dollar on Tuesday, after the re- lease of downbeat U.K. manufacturing data added to concerns over the strength of the British economy.GBP/USD hit 1.2968 during European morning trade, the pair’s lowest since July 11; the pair subsequently consolidated at 1.2978, declining 0.47%. Cable was likely to find support at 1.2848, the low of July 11 and resistance at 1.3178, the high of August 5. The U.K. Office for National Statistics said manufacturing production decreased by 0.3% in June, worse than expectations for a decline of 0.2% and following a drop of 0.6% a month earlier that was revised down from an initial 0.5% decrease.On an annualized basis, manufacturing production rose 0.9% in June, worse than forecasts for a 1.3% increase.
- BUY GBP/USD ABOVE 1.3047 TGT 1.3067 1.3097 SL 1.3017
- SELL GBP/USD BELOW 1.2960 TGT 1.2940 1.2910 SL 1.2990