20 August, 2015
After today’s release of the Retail Sales data for July in the UK that came out worse than forecasts, the GBP fell against the USD and the Euro.
The Euro also found a support in the latest FOMC Minutes that suggested a possibility of the delay in the interest rate hike in the US in September, in the confirmation of the approval of the first financial aid tranche to Greece, and after the statement by the French president Francois Hollande of a forecasted 1% GDP growth for this year in France.
Nevertheless, the EUR/GBP pair remains in the downward medium-term trend amid the difference in monetary policies between the ECB and the Bank of England.
Support and resistance
On the daily chart, the price remains near the top border of the descending channel, the breakout of which would allow the pair to grow to 0.7210, 0.7250 (ÅÌÀ144), 0.7340 (ÅÌÀ200).
OsMA and Stochastic on the 4-hour and daily charts give buy signals, but the Stochastic on the 4-hour chart is in the overbought zone.
Should the price overcome the levels of 0.7100 (EMA50 on the daily chart), 0.7080 (EMA200 on the 4-hour chart), 0.7065 (0% Fibonacci, March and May lows), the pair continues falling towards 0.6900.
Support levels: 0.7100, 0.7080, 0.7065, 0.7000.
Resistance levels: 0.7210, 0.7250, 0.7340.
Open short positions from the current levels and from 0.7150, 0.7110 with targets at 0.7080, 0.7065, 0.7010, 0.6990, 0.6950 and stop-loss at 0.7175.
Long positions can be opened after the price consolidation above the level of 0.7210 (with the appropriate indicators signals) with targets at 0.7250, 0.7340, 0.7445.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
|8||Fort Financial Services||67%|