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Old 11-09-2014, 11:12
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Default Re: Technical News | GDMFX Brokerage | Daily

FOREX NEWS: SHORT TERM RESISTANCE HOLDS. THE PROBABILITY OF NEW LOWS INCREASES



EUR/USD
Forex News: Yesterday the pair showed mixed price action with both the bulls and the bears battling for control. No major indicators were released and price couldnít break minor resistance but the sellers didnít manage to threaten support either.


Technical Outlook
Price action established the zone around 1.2960 as short term resistance and this will be the first barrier in front of higher prices. Yesterday we saw another rejection off of this level but further bullish movement is not out of the question and a break of the mentioned level will most likely bring in additional buyers. To the downside, the first level of interest sits at 1.2860 and a break would show that bears still have some steam left and that price will continue to move south, towards 1.2750.

Fundamental Outlook
The dayís direction will be influenced by Mario Draghiís speech scheduled at 7:00 pm GMT. The ECB President will speak in Milan at the Eurofi Financial Forum 2014 and any reference regarding the current Euro Zone situation will most likely trigger a response in the market. Keep in mind that the relatively late hour of the speech may be a reason why impact could be mild; however, if Draghiís position will be straightforward, the market impact will be strong so we recommend caution.


GBP/USD
After a touch of support, the pair headed north yesterday on the back of a hawkish attitude shown by Bank of England Governor Mark Carney during the Inflation Report Hearings.


Technical Outlook
Although we had some bullish action yesterday, the pair didnít manage to break the short term resistance located at 1.6160. This might be a sign that downside movement is next, aiming for 1.6060 support, but we must note the position of the Relative Strength Index which is now coming out of oversold territory for the first time in a long period, a fact which favors the bulls. However, bearish price action is anticipated, considering the strong downtrend the pair is in.

Fundamental Outlook
The United Kingdom didnít schedule important news releases for the day so price direction will be influenced by the technical factors.
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