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Old 10-09-2014, 12:35
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GDMFX GDMFX is offline
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Default Re: Technical News | GDMFX Brokerage | Daily


Forex News: The economic scene lacked major developments and the pair moved lower just to return higher later in the day. Yesterday’s low was broken before the bullish move and a new yearly low was printed.

Technical Outlook
Currently the pair is testing the recently broken level of 1.2920 but the downtrend doesn’t show signs of slowing down thus there’s a high probability that price will bounce lower, turning the previous support into resistance. The next major support is located at 1.2750 (better seen on a Daily chart) and the first resistance sits at 1.3000.

Fundamental Outlook
The day ahead has a lackluster news scene for the Euro and US Dollar and price action will be mostly influenced by the technical aspect.

Mark Carney’s speech was postponed for a few hours yesterday but the bullish effect created by the Governor’s attitude was soon dampened by the sellers’ pressure.

Technical Outlook
The pair moved above and below the level at 1.6100 and the day was pretty volatile but neither side made any major advances. The Relative Strength Index continues to trade deep into oversold territory and the possibility of bullish moves has increased but the Pound cannot seem to recover, mostly due to the Scottish independence issue which continues to be a major influence. Minor support sits at 1.6060 while first resistance is located at 1.6160.

Fundamental Outlook
Bank of England Governor alongside members of the Monetary Policy Committee will testify on economic outlook and inflation today at 1:45 pm GMT, before the Parliament’s Treasury Committee. Their speeches will most likely have a strong impact on the Pound but the direction will be determined by their answers and attitude. Volatility will probably be high and caution is recommended.
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