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Old 03-09-2014, 12:03
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GDMFX GDMFX is offline
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Default Re: Technical News | GDMFX Brokerage | Daily


Forex News: Speculation that the Fed will raise interest rates sooner than anticipated boosted the US Dollar and allowed it to climb versus its main counterparts. This affected our pair as well, but the impact was not tremendous and major support was not touched.

Technical Outlook
If 1.3100 support is touched, we expect bullish pullbacks into 1.3150 – 1.3200 resistance. On a Daily chart the trend has been moving straight down for an extended period and the Relative Strength Index is deep in oversold territory. These factors call for a “breather” in the form of a retracement north but the pair’s direction may be affected by the economic indicators that are released today.

Fundamental Outlook
The European Retail Sales numbers come out at 9:00 am GMT and a negative change is expected from the previous 0.4% to -0.3%. Although Retail Sales are usually a high impact indicator, this release is likely to have a muted impact because Germany and France have already released their consumer spending indicators, but higher than anticipated numbers will most likely add some strength to the Euro.

The Pound weakened drastically against the US Dollar as a survey showed increased support for Scotland’s independence which will be decided through a referendum later this month. The release of the British Construction PMI was mostly overlooked by market participants.

Technical Outlook
Now that 1.6550 is clearly broken, the first support and target for the pair is located at 1.6460. The downtrend is resumed and the ranging period is hopefully over but we might see moves close to 1.6550 before 1.6460 is touched. If such a scenario occurs and 1.6550 will turn into resistance, the chances of a touch of 1.6460 will increase.

Fundamental Outlook
The UK Services PMI is released today at 8:30 am GMT and it’s expected to drop from last month’s 59.1 to 58.6, a fact which would be detrimental for the Pound. The indicator is a measure of optimism among purchasing managers from the British Services sector and also acts as a leading indicator of economic health.
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