FOREX NEWS: EUROPEAN INFLATION DATA – THE DAY’S ONLY NOTABLE RELEASE
EUR/USD
Forex News: Friday bearish movement resumed but price action was not very fast or volatile; however, the pair traveled below 1.3560 and the Euro continued to weaken.
Technical Outlook
Recent price action created minor support at 1.3520 and this will be the first barrier in front of further downside movement but the bearish momentum seems to slow down lately, a fact which signifies that the pair might re-visit 1.3560 resistance. The Relative Strength Index doesn’t show an extreme reading and it’s rather neutral but Eurozone’s CPI is release today and this can be a deciding factor for the day’s direction.
Fundamental Outlook
At 9:00 am GMT the European Consumer Price Index is announced and anticipated to remain unchanged at 0.5%. Inflation is still a concerning matter and lower values will most likely weaken the Euro, considering the fact that ECB’s inflation target is just below 2.0% and the current CPI is far from this target.
GBP/USD
Bank of England Governor Mark Carney commented that a rate hike may be discussed sooner than anticipated, a fact which triggered enormous Pound strength and took the pair into the year’s high.
Technical Outlook
Price came within a few pips of a multi-year’s high located at 1.6996, putting the bulls in clear control of the pair. However, this control could be lost if 1.6996 (1.7000) is not broken during the next days and we must note the severe overbought condition signaled by the Relative Strength Index on a four hour chart. This increases the chance of a retracement lower which may find support at 1.6920.
Fundamental Outlook
The United Kingdom didn’t schedule major news releases for today and price action will be mainly affected by technical factors.
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