FOREX NEWS: A QUIET FUNDAMENTAL SCENE INFLUENCES PRICE ACTION
EUR/USD
Forex News: The US Non Farm Payrolls posted a better than expected number but still lower than last’s month value, a fact which created mixed movement Friday at the time of the release.
Technical Outlook
The first reaction to the US jobs report was a drop which was soon reversed and the pair started to move upwards. The immediate target is represented by 1.1875; this could be a place where the bears will take back control of the pair, especially if the Relative Strength Index and the Stochastic will be coming out of overbought territory. To the downside, the first potential support is located at 1.1750.
Fundamental Outlook
The day ahead lacks major economic releases, a fact which makes us believe that we will see slow, ranging movement.
GBP/USD
Overall Friday was a bullish day, with irregular movement present at the time of the American Non Farm Employment Change report. The pair remained above 1.5100 for the entire day.
Technical Outlook
Price moved above horizontal resistance and above the 50 period Exponential Moving Average on an hourly chart, completing a much needed bullish retracement. A downtrend is still in place and this increases the chances of bearish movement with the first target being located at 1.5100, followed by 1.5035. To the upside, the first resistance sits at 1.5260.
Fundamental Outlook
The United Kingdom didn’t schedule economic releases today, so price action will be driven by the technical aspect but we don’t expect any substantial developments.