INTERNATIONAL CURRENCY BUZZ
- Forex – Aussie holds steady, kiwi moves higher ahead of U.S. data.
- Forex – Yen holds slight gains in Asia after industrial output.
- Forex – Yen gains slightly after flat industrial output in July.
Yesterday, the impulsive wave E traded short as previously forecasted but is yet to reach our target supportive trend line. Although we expect a momentum to the lower side, we wait for minor corrections to the upper side to give us low risk sell opportunities with an ideal target along the lower supportive trend line. we expect a similar impulsive ally in other positively correlated pairs such as NZD/USD and EUR/USD. This pairs have a strong +ve correlation of up +0.91 and will have a parallel price action during this intraday.
The pound slipped lower agains the U.S. dollar on Tuesday, re-approaching a one-week trough after the release of downbeat U.K. data and as expectations for a U.S. rate hike before the end of the year continued to support the greenback.GBP/USD hit 1.3060 during European morning trade, the session low; the pair subsequently consolidated at 1.3068, shedding 0.28%.Cable was likely to find support at 1.2871, the low of August 18 and resistance at 1.3280, the high of August 26.The Bank of England earlier reported that net lending to individuals increased by £3.8 billion in July, compared to expectations for a £4.9 billion rise. Net lending to individuals increased by £5.1 billion in June, whose figure was revised from a previously estimated gain of £5.2 billion.
- BUY GBPUSD ABOVE 1.3265 TGT 1.3285 1.3315 SL 1.3235.
- SELL GBPUSD BELOW 1.3045 TGT 1.3025 1.2995 SL 1.3075.