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Old 02-09-2014, 11:20
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GDMFX GDMFX is offline
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Default Re: Technical News | GDMFX Brokerage | Daily


Forex News: The Euro climbed yesterday, moving towards 1.3150 but price action lacked momentum as no major economic news came out and the market suffered from low volatility due to the fact that US banks were closed.

Technical Outlook
The bears slowed down their momentum but the downtrend is intact and a touch of 1.3150 is expected before we can see more downside movement. If 1.3150 is surpassed, the next resistance is located at 1.3200 but we might experience slow and ranging movement until the ECB meets this week. The first level of interest to the south is 1.3100.

Fundamental Outlook
The main event of the day will be the release of the American Manufacturing PMI scheduled at 2:00 pm GMT. This is a survey of about 400 purchasing managers from the manufacturing sector who are asked to rate economic and business conditions; the anticipated value is 57.0 and higher numbers usually strengthen the greenback as they suggest that optimism among purchasing managers is increasing.

The Pound strengthened earlier in the day but the disappointing value of the British Manufacturing PMI stopped further bullish advances and erased some of the Poundís gains.

Technical Outlook
The current bullish move can be considered just a retracement in a rather strong downtrend so we expect downside movement and another close encounter with 1.6550 support. The Relative Strength Index is approaching the overbought level for the first time in a long while and bearish divergence is present, a fact which favors another move south. If the pair continues upwards, it will encounter the first resistance at 1.6700.

Fundamental Outlook
AT 8:30 am GMT the British Construction PMI is released and anticipated to drop from last monthís 62.4 to 61.5. Since this is a measure of optimism among purchasing managers from the construction sector, it acts as a leading indicator of economic health and higher than anticipated numbers are beneficial for the Pound. As always, the US events will directly affect the pair as well.
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