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Old 14-07-2014, 12:38
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Default Technical News | GDMFX Brokerage | Daily

FOREX NEWS: MIXED PRICE ACTION AHEAD OF MARIO DRAGHI’S TESTIMONY



EUR/USD
Forex News: Friday lacked major news announcements and price action was extremely slow, moving sideways for almost the entire day. Support is still holding as the pair traded in a 35 pip range.


Technical Outlook
Price remains confined within the horizontal channel created by the support located at 1.3585 and the resistance at 1.3640. Lately the pair totally lacks volatility and bounces between S/R levels as neither bulls nor bears seem interested to take control of direction. We expect more of this type of movement until 1.3640 or 1.3585 is broken, a fact which may occur today during Mario Draghi’s speech.

Fundamental Outlook
At 5:00 pm GMT, ECB President Mario Draghi will testify on monetary policy in Strasbourg, before European Parliament’s Committee on Economic and Monetary Affairs. The speech will most likely offer clues about future monetary direction and actions of the ECB, probably generating a price breakout. We recommend caution if trading during the speech.


GBP/USD
The Pound slowed down Friday and weakened against the greenback but the bears couldn’t take the pair below 1.7095 and the week finished above this support.


Technical Outlook
The support at 1.7095 has been tested several times and the downwards pressure is increasing lately. The Pound reached historical highs and now the time for a bearish retracement has come, considering the fact that price is overextended and the Relative Strength Index is moving down from overbought territory on the higher time frames (Daily and Weekly). If today 1.7095 is broken, the first potential target is 1.7063; otherwise we will have another day when price ranges inside the channel.

Fundamental Outlook
We have a calm economic day as no major events are scheduled by the UK. Price action will be mostly driven by technical factors.
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