INTERNATIONAL CURRENCY BUZZ
- Forex – GBP/USD slides lower despite positive U.K. data.
- Forex – Yen weaker in early Asia as markets eye Fed debate on rate hikes.
- Forex – Dollar moves higher vs. rivals, bounces off 7-week trough.
EUR/USD is currently trading with a bearish bias. Yesterday, the pair traded long as previously forecasted but is yet to reach our target resistance level at 1.13866. Euro is still pretty much bullish on the daily chart and may head further to the upper side. We expect the current downward movement to be a mere corrective pullback and should not go beyond 1.13080 from where we’ll be looking for potential low risk buy opportunities. This pair be traded alongside EUR/JPY, GBP/USD, NZD/USD and AUD/USD. These pairs have a
strong positive correlation of up to +0.93 and will have a similar price action during this intraday.
The pound slid lower against the U.S. dollar on Friday, despite the release of positive data from the U.K., as Thursday’s upbeat U.S. economic reports continued to lend support to the greenback.GBP/USD hit 1.3112 during European morning trade, the session low; the pair subsequently consolidated at 1.3115, declining 0.43%.Cable was likely to find support at 1.2976, Wednesday’s low and resistance at 1.3449, the high of August 4.The U.K. Office for National Statistics said that public sector net borrowing declined by £1.47 billion in July, compared to expectations for a £1.20 billion fall.Public sector net borrowing in creased by £7.51 billion in June, whose figure was revised from a previously estimated £7.31 billion gain.But the dollar remained supported after data on Thursday showed that initial jobless claims decreased by 4,000 to 262,000 last week, compared to expectations for a 1,000 decline to 265,000.
- BUY GBPUSD ABOVE 1.3087 TGT 1.3107 1.3137 SL 1.3057
- SELL GBPUSD BELOW 1.3048 TGT 1.3028 1.2998 SL 1.3078