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Old 03-03-2015, 11:56
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GDMFX GDMFX is offline
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Default Re: Technical News | GDMFX Brokerage | Daily

FOREX NEWS: BULLS FADING AS SHORT TERM RESISTANCE GENERATES MOVES SOUTH



EUR/USD
Forex News: European inflation showed improvement yesterday and the single currency reacted accordingly by strengthening when the data came out. However, the second part of yesterday’s trading session belonged to the bears.


Technical Outlook
The pair climbed to touch Friday’s high located at 1.1245 but the level offered good resistance and price soon bounced lower. This adds to our bearish bias and we consider the next destination to be the support zone near 1.1100. The fact that the Stochastic is below 30 and the Relative Strength Index is also moving close to oversold could invalidate this scenario and could generate some bullish movement; however, if price does move north but 1.1270 is not broken, the chances of a move into 1.1100 will increase.

Fundamental Outlook
The Spanish Unemployment numbers are released at 8:00 am GMT and this will be the day’s main event. The indicator tracks changes in the number of unemployed people compared with the previous month and usually creates strong movement only if big differences are posted. For today’s release analysts expect a drop from the previous 78.0K to 10.5K and this would strengthen the euro because fewer unemployed people are beneficial for the economy.


GBP/USD
The British Manufacturing PMI came out slightly better than analysts anticipated and this triggered some mild Pound strength but soon after the release, the US Dollar erased the small Pound gains and the pair started to move south.


Technical Outlook
The pair moved below 1.5420 once again and then returned for a perfect re-test which resulted in a bounce lower; the 50 period Exponential Moving Average is above price and the momentum belongs to the bears so we anticipate a touch of 1.5340 support. If the Relative Strength Index will become oversold by the time price reaches support, we expect small bullish bounces; the extent of these bounces is likely to be limited.

Fundamental Outlook
The British Construction PMI is scheduled at 9:30 am GMT and expected to slightly decrease from the previous 59.1 to 59.0. This is a leading indicator of economic health which usually has a medium impact on the currency but higher numbers are considered beneficial. Half an hour later, at 10:00 am GMT, Governor Mark Carney will testify before the Treasury Select Committee and the impact on the currency market could be strong, depending on his attitude and answers. Caution is recommended.
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