Further downside in GBPUSD likely

22 March, 2016

The British Pound is likely to come under pressure as further downside momentum is likely to see the GBP give back some of its previous gains as UK's inflation data is due later today. Gold prices remain flat but another test to 1250 is likely while the bias remains to the downside.

EURUSD Daily Analysis

EURUSD (1.12): EURUSD has eased back from its bullish momentum after prices hit the resistance at 1.13. Trading within the range of 1.13 and 1.12, EURUSD is likely to continue trading sideways unless one of the levels gives way. Above 1.13, price action is likely to see a test of 14th September highs near 1.1460 while to the downside, below 1.120, EURUSD could slip towards 1.11 support. The 4-hour Stochastics is currently in the oversold level which could indicate a potential move higher towards 1.13.

USDJPY Daily Analysis

USDJPY (111.9): USDJPY closed the second day with bullish gains but remains capped below 112.0 support/resistance. A break above 112.0 will see further upside in store towards 114 resistance level while to the downside below 111.0, the next support at 110 could cap the declines. On the daily chart, USDJPY is forming a bullish divergence which could eventually see a longer term correction to 117 if the resistance at 114 breaks to offer support. On the 4-hour chart, however, the Stochastics is in the oversold levels, indicating a possible move lower to 111.31 to establish support as the bias remains limited to the downside for now.

GBPUSD Daily Analysis

GBPUSD (1.43): GBPUSD declined below the previous day's doji low and closed below 1.443. Failure to close back above this level could see further downside in GBPUSD towards 1.42. A possible retest to the 1.443 could see GBPUSD cap the upside gains for a move to test the next support near 1.4263 - 1.4247. Below this support, the bias in GBPUSD turns bearish as the next support comes in at 1.4025 - 1.40.

Gold Daily Analysis

XAUUSD (1244): Gold prices have closed the third day with declines but prices remain supported above 1246 - 1238 levels which could see another test to 1250, this time, to establish resistance. A confirmation of this could see further downside towards 1230 - 1225 levels where the next support comes in. The 4-hour Stochastics is oversold and confirms a move to the upside with an eye on 1250.


Source link  
US dollar hit by Trump's comments

The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...

Gold gives up gains

The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...

Inflation in Mexico set to rise on higher fuel prices

Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...


Regional manufacturing indexes point to a stronger ISM manufacturing PMI

The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...

USDJPY Trims Gains. Support Seen At 104 - 103

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...

Dollar Supported, Heading Into FOMC

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...


EURUSD Remains Supported Above 1.110

The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...

GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...

GBPUSD could test 1.32 on the descending wedge

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...

  


Share: