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Old 27-08-2014, 14:12
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Default Technical News | GDMFX Brokerage | Daily

FOREX NEWS: MARKET IN CONSOLIDATION PHASE. BREAKOUTS EXPECTED



EUR/USD
Forex News: The Durable Goods Orders showed a much better than anticipated value yesterday but the Core version of the same indicator, which excludes transportation items, posted a surprising drop and all this generated mostly sideways price action.


Technical Outlook
The bullish divergence is still present and the level at 1.3200 seems strong as the pair couldn’t break it decisively. On top of that, the weekly gap is still not closed so bullish moves are still expected but yesterday’s price action doesn’t offer a lot of hints about future direction so for the time being we are neutral on the pair, expecting a break of the consolidation pattern created around 1.3200.

Fundamental Outlook
The day ahead is very slow in terms of economic releases and the only notable indicator is the GFK German Consumer Climate scheduled at 6:00 am GMT. Its value is expected to drop slightly from the precious 9.0 to 8.9 and better than expected figures are usually beneficial for the Euro but the indicator tends to have a mild impact on the market.


GBP/USD
The British Bankers’ Association Mortgage Approvals were fewer than anticipated but the figure didn’t differ much from analysts’ expectations and it didn’t create a huge impact as a result.



Technical Outlook
The bulls failed to take price above 1.6600 minor resistance but on the other hand, the bears didn’t succeed to break 1.6550 and this shows that indecision is currently governing the pair. These two levels will be important for today’s price action and a break of either one will probably generate an extended move in that direction. A conservative approach would be to expect the retest after the initial break occurs.

Fundamental Outlook
The United Kingdom didn’t schedule any economic indicator releases for the day, thus price direction will be mainly influenced by the technical aspect.
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