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Old 13-02-2015, 13:29
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GDMFX GDMFX is offline
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Default Re: Technical News | GDMFX Brokerage | Daily

FOREX NEWS: BROKEN RESISTANCE OPENS THE DOOR FOR FURTHER ADVANCES



EUR/USD
Forex News: The pair finally broke out of the tight range, mostly due to a disappointing U.S. Retail Sales report which showed a -0.8% change compared with the expected -0.4%.


Technical Outlook
Although 1.1360 resistance is broken, price is likely to return in that area for a re-test, considering the overbought condition showed by the Relative Strength Index on an hourly chart. If the touch will result in a bounce higher, the next target is located at 1.1500 but a return below 1.1360 would indicate that the ranging period is still not over and will open the door for a move back into 1.1270 zone.

Fundamental Outlook
The German Gross Domestic Product is scheduled for release at 7:00 am GMT and an increase is anticipated from the previous 0.1% to 0.3%. This would strengthen the Euro since the German economy is of major importance to the entire Euro zone and the GDP is an economy’s main performance gauge.

Later in the day, at 3:00 pm GMT the University of Michigan will release a Consumer Sentiment survey which is expected to show a value of 98.2, almost unchanged from last month’s 98.1. Higher values are usually beneficial for the US Dollar as consumer sentiment is tightly correlated to consumer spending.


GBP/USD
Mark Carney’s speech together with the Inflation Report generated Pound strength although the event contained some mixed – even contradictory – signals regarding inflation and a potential rate cut.


Technical Outlook
The Relative Strength Index moved well above the 70 level, signaling an overbought condition of price. This means that we might see bearish retracements which will most likely find support near 1.5340 zone, followed by 1.5300. The next important resistance is located around 1.5540 but we don’t expect such a move unless surprising developments take place.

Fundamental Outlook
The United Kingdom didn’t schedule major news releases thus price direction will be decided by technical factors and by the U.S Consumer Sentiment.
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