Forex News: Pairs on the Downslide, Amid a Lacklustre Economic Environment
Forex News: The pair showed rejection at resistance yesterday and picked up speed, moving south and breaching the previous low at 1.1575. The move was mostly due to increased US Dollar demand, in absence of any notable economic data.
The pair breached the nearly 4-month low at 1.1575 and this will most likely generate additional selling pressure, taking price into the 1.1500 zone (psychological level), followed by 1.1480 (technical level). However, before those targets can be reached, we will probably see moves up, possibly a re-test of 1.1575 from below but at the time of writing this support is not clearly broken. The Relative Strength Index is approaching oversold territory and this may contribute to a bullish move.
Today’s economic calendar is lacklustre, without any notable releases, so the pair’s direction will be decided by the technical aspect unless surprise announcements occur.
Yesterday’s trading session lacked major economic news but the pair showed relatively good momentum and erased a part of the move up seen Friday. Resistance is still holding and the pair is approaching support.
After moving slightly above the 50 period Exponential Moving Average and above 1.3160, price reversed, showing that we are not dealing with a true break of resistance. This means that today we will probably see a touch of 1.3100 support, where the next direction will be decided: a break will take the pair into 1.3030, testing the lower boundary of the range, while a bounce will make 1.3160 the target once more.
Similar to the other two currencies, the Pound will not be affected by economic data today so the main focus will be on the technical aspect.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.