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[size=small][B][I]FOREX NEWS: THE CALM AFTER THE STORM?

EUR/USD[/I][/B]

Forex News: The FOMC cluster of events generated huge volatility yesterday but unfortunately the price movement was almost untradeable at the time because of huge whipsaws and choppy up and down movement.

2014.06.19-The-calm-after-the-storm-pic1

[B][I]Technical Outlook[/I][/B]

Yesterday’s price action holds absolutely no technical clues about future movement but the fact still remains that 1.3585 resistance couldn’t be broken decisively. This increases the chance of a bearish trend resumption but moves above the mentioned level will make 1.3680 the next potential target.

[B][I]Fundamental Outlook[/I][/B]

The Eurogroup Meetings start today and are attended by finance ministers of countries where Euro is the main currency; the President of the ECB will also participate and the discussions which will take place will have an impact on the Euro’s future direction. Later in the day, at 2:00 am GMT the Philly Fed Manufacturing Index is released, showing the opinions of about 250 manufacturers from the Philadelphia district regarding the current level of business conditions. The expected figure is 14.3, a decrease from the previous 15.4 and usually lower numbers are detrimental for the US Dollar.


[B][I]GBP/USD[/I][/B]

The pair was also highly affected by the US events but price action was slightly more docile than EUR/USD. We had another encounter with 1.6996 and a bounce off 1.6920 in what was a hectic trading session.

2014.06.19-The-calm-after-the-storm-pic2

[B][I]Technical Outlook[/I][/B]

We saw yesterday a clear rejection at 1.6920 which has now turned into support, a fact which makes 1.6996 the next destination for the pair. At the moment the bullish momentum is renewed by the immediate bounce at support and it seems like the Pound is headed for new highs. A break of support would invalidate this scenario.

[B][I]Fundamental Outlook[/I][/B]

At 10:00 am GMT the CBI Industrial Order Expectations are announced and anticipated to rise from 0 to 3. The indicator is a survey that asks British manufacturers to rate the expected volume of orders during the next three months and usually expectations above 0 indicate optimism and strengthen the Pound.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: EUROPEAN MANUFACTURING AND US HOUSE-MARKET DATA AHEAD

EUR/USD[/I][/B]

Forex News: The main trend Friday was bearish, partially generated by a light overbought state of the market. There were no important economic releases and price action was relatively smooth.

image0014-1024x477.png

[B][I]Technical Outlook[/I][/B]

Price failed to finish the trading day below 1.3585 and the bulls have been showing some pressure lately, stopping the bearish momentum at 1.3520. However, neither bulls nor bears are in clear control and today’s direction will be determined by price behavior around the current level of interest (1.3585). A bearish break will make 1.3520 the next target while a bounce higher will most likely take the pair back into 1.3640 resistance zone.

[B][I]Fundamental Outlook[/I][/B]

At 7:00 am GMT the French Manufacturing PMI is announced but no change is expected from the previous value of 49.6; half an hour later the German Manufacturing PMI is released and expected to change from 52.3 to 52.7. Both are leading indicators of economic health based on the opinions of purchasing managers from the Manufacturing sector and higher numbers are usually beneficial for the Euro.

The United States will release at 2:00 pm GMT the Existing Home Sales numbers which are expected to increase from 4.65M to 4.74M. The indicator has a slightly greater importance than the New Home Sales (will be released a day after) because existing homes represent the majority of total sales. Higher numbers usually strengthen the US Dollar.


[B][I]GBP/USD[/I][/B]

Friday the pair retraced lower, a normal behavior, considering the extended move upwards and the overbought condition signaled by the Relative Strength Index; however, the bears didn’t manage to break important levels.

image0033-1024x477.png

[B][I]Technical Outlook[/I][/B]

The move south seen Friday is considered just a retracement, not a reversal; a good place for price to start moving upwards again is 1.6996 which was previous resistance and now may become support. A bearish break of the mentioned level would indicate that high prices become harder and harder for bulls to sustain and would weaken the current uptrend, making 1.6920 the next medium-term destination. Resistance now sits at 1.7063.

[B][I]Fundamental Outlook[/I][/B]

The United Kingdom doesn’t release any major economic indicators today and price action will be mostly influenced by the technical aspect and by the US data mentioned above.
 


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: EURO CONFINED IN A RANGE, POUND WEAKENED BY DOVISH COMMENTS

EUR/USD[/I][/B]

Forex News: The pair had another difficult to trade day as price first climbed and then dropped below the opening price on the back of better than expected US economic data. Currently the support at 1.3585 is being re-tested from above but the pair is in a ranging state.

2014.06.25-Euro-confined-in-a-range-Poun

[B][I]Technical Outlook[/I][/B]

Price action continues to trade sideways and all moves in one direction are quickly reversed. The current level of 1.3585 is important for short term movement and a break would open the door for additional sellers to enter the market and to take the pair into the more important support located at 1.3520. Minor resistance sits at 1.3640 – 1.3645 but the market is ranging and we are neutral until an important level is breached.

[B][I]Fundamental Outlook[/I][/B]

Two important US events represent today’s headlines: at 12:30 pm GMT the Durable Goods Orders are announced with a negative change anticipated, from the previous 0.6% to -0.1%. At the same time the Final version of the Gross Domestic is released and although its impact is lower than the Advance GDP, volatility can still be generated as the GDP is an economy’s main performance gauge. The expected change is -1.7%while the previous was -1.0%. Lower numbers for either indicator can determine a weakening of the US Dollar.


[B][I]GBP/USD[/I][/B]

The Pound weakened throughout the day against the US Dollar as Mark Carney showed a dovish attitude towards a potential rate hike and dampened any speculation that BOE will raise rates sooner than anticipated.

2014.06.25-Euro-confined-in-a-range-Poun

[B][I]Technical Outlook[/I][/B]

The potential support level at 1.6996 was easily broken yesterday on the back of Pound weakness generated by Carney’s comments and now it seems like the pair is headed for 1.6920 support. Before that happens, a re-test of 1.6996 is very probable. If this re-test is successful and price bounces lower, the chances of a reversal will increase and resistance will be located at 1.6996 once again. Throughout the day keep an eye for an oversold condition of the Relative Strength Index on the four-hour chart.

[B][I]Fundamental Outlook[/I][/B]

Today the United Kingdom doesn’t release any major economic data so price action will be mainly influenced by the technical side and by the US events mentioned above.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: CARNEY’S SPEECH – DOVISH OR HAWKISH?

EUR/USD[/I][/B]

Forex News: The American currency weakened yesterday against its counterparts as disappointing values were posted for both the Durable Goods Orders and the Gross Domestic Product. As a result the pair touched resistance at 1.3640 and the day was controlled by the bulls.

2014.06.26-Carneys-speech-Dovish-or-Hawk

[B][I]Technical Outlook[/I][/B]

The pair continues to move extremely slowly compared to its normal behavior and although yesterday the bulls showed clear signs of dominance, future direction is uncertain. The current level of resistance may push price lower or it may bring in more buyers if a break is recorded, so today’s price action revolves around a “bounce or break” scenario. Next resistance is located at 1.3680 while support sits at the uptrend line, followed by 1.3585.

[B][I]Fundamental Outlook[/I][/B]

Today lacks major announcements for both the Euro and the US Dollar and the pair’s direction will be mostly affected by technical factors.


[B][I]GBP/USD[/I][/B]

US Dollar weakness was seen against the Pound as well and the pair made a push for 1.6996. However, the bulls lacked the necessary strength to break resistance and price remained below it.

2014.06.26-Carneys-speech-Dovish-or-Hawk

[B][I]Technical Outlook[/I][/B]

At the moment we are seeing rejection at 1.6996 (1.7000) resistance and it seems like the bulls failed to renew the uptrend. This suggests that moves lower may follow and that 1.6920 support might be the next destination. A climb above 1.7000 will invalidate this scenario but Mark Carney’s speech will be the day’s headline and will probably have a strong impact on price action.

[B][I]Fundamental Outlook[/I][/B]

AT 9:30 am GMT the Bank of England will release the Financial Stability Report which contains an assessment of potential risks to the current financial system and an in-depth analysis regarding financial stability in the UK. At the same time, BOE Governor Mark Carney will hold a press conference and will deliver a speech focused on the mentioned Report. His attitude will most likely have a great impact on the Pound and will be the day’s main market mover.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: GERMAN INFLATION NUMBERS MAY PUT AN END TO RANGING MOVEMENT

EUR/USD[/I][/B]

Forex News: The US Dollar continued to weaken yesterday against its major counterparts and the Euro was no exception; after an unsuccessful attempt to break resistance, price moved south to touch 1.3585 support but finished the day above it.

2014.06.27-German-inflation-numbers-may-

[B][I]Technical Outlook[/I][/B]

The pair is still ranging, without choosing a direction and this gives greater importance to the oversold condition of the Relative Strength Index and to the support located at 1.3585. We anticipate a bounce higher and a move back above the uptrend line but today’s important financial data will be the determining factor.

[B][I]Fundamental Outlook[/I][/B]

The main event of the day is the German Consumer Price Index which is released at 12:00 pm GMT and anticipated to change from the previous -0.1% to 0.2%, a fact which would be beneficial for the Euro as German inflation accounts for a big part of European inflation.


[B][I]GBP/USD[/I][/B]

Mark Carney’s speech regarding the Financial Stability Report was perceived as hawkish by market participants and the pair climbed yesterday above 1.7000.

2014.06.27-German-inflation-numbers-may-

[B][I]Technical Outlook[/I][/B]

At the moment the pair looks like it’s making an attempt to touch 1.7063 once again. The Pound was strengthened by more speculation about a rate hike which may come before the end of the year and the greenback is weakened by a worse than expected GDP so things look bullish and we anticipate a touch of the mentioned level. First support is located at 1.6996 (1.7000), followed by 1.6920.

[B][I]Fundamental Outlook[/I][/B]

United Kingdom’s Final version of the Gross Domestic Product will be announced today at 8:30 am GMT. Although the Final version is the last and tends to have a milder impact on price action compared to the Advance version, we can still expect sharp moves at the time of the release, especially if the actual figure will differ from analysts’ prediction of 0.8%. Since this is the main gauge of an economy’s performance, higher values usually strengthen the Pound and the opposite is true for lower numbers.

We hope you had a profitable trading week and we wish you a relaxing weekend.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: EURO ZONE INFLATION IN THE SPOTLIGHT ONCE AGAIN

EUR/USD[/I][/B]

Forex News: The bulls controlled most of Friday’s trading session on the back of a slightly better than anticipated value of the German Consumer Price Index. However, the pair is still trading in a range and resistance is not clearly broken.

2014.06.30-Euro-Zone-inflation-in-the-sp

[B][I]Technical Outlook[/I][/B]

Last week’s price action increases dramatically the chances of a breakout which will most likely occur this week, but the direction is hard to predict. Price just bounced between 1.3585 support and 1.3640 resistance and neither bulls nor bears made clear attempts to take control of direction. The encounter with resistance seen Friday may generate a bounce lower and a potential break of the uptrend line but if the pair continues upwards, it will encounter strong resistance at 1.3675.

[B][I]Fundamental Outlook[/I][/B]

At 9:00 am GMT the Euro Zone Consumer Price Index is released and anticipated to increase from 0.5% to 0.6%. If this comes true (or if higher numbers are posted), the Euro will most likely strengthen against the US Dollar and we will have a bullish day.

At 2:00 pm GMT the US Pending Home Sales are announced, showing the change in the number of houses which still await the closing transaction. The forecast is for an increase from 0.4% to 1.4%, a fact which would be considered beneficial for the greenback.


[B][I]GBP/USD[/I][/B]

United Kingdom’s Final version of the Gross Domestic Product came out Friday with the anticipated value of 0.8%, a fact which generated mixed price action and overall a ranging day.

2014.06.30-Euro-Zone-inflation-in-the-sp

[B][I]Technical Outlook[/I][/B]

Resistance sits at 1.7063 but the bulls seem to lack the needed power to break it and to renew the uptrend. For today’s price action we expect more ranging movement, with price confined between the support at 1.6996 (1.7000) and the resistance just mentioned.

[B][I]Fundamental Outlook[/I][/B]

The United Kingdom didn’t schedule any major indicator releases today and the pair’s direction will be mainly affected by American data and by the technical aspect.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: A HIGHLY VOLATILE DOUBLE-FEATURE: ECB PRESS CONFERENCE AND AMERICAN NFP

EUR/USD[/I][/B]

Forex News: US Employment data released yesterday showed that job creation increased more than expected according to the privately owned company that put together the report. The US Dollar benefited and managed to gain against the Euro.

2014.07.03-A-highly-volatile-double-feat

[B][I]Technical Outlook[/I][/B]

Currently the pair is testing the confluence zone created by the uptrend line and the support level at 1.3640 and the last push above 1.3675 wasn’t enough to bring in more buyers and to generate a continued bullish move. The main levels to watch remain 1.3730 as resistance and 1.3520 as support but today’s technical aspect will be overshadowed by the fundamentals.

[B][I]Fundamental Outlook[/I][/B]

The ECB Interest Rate will be announced at 11:45 am GMT but no change is expected and the main event of the day will be a double feature: the ECB Press Conference and the US Non Farm Employment Change. Both events take place at the same time, 12:30 pm GMT. Mario Draghi is likely to give traders more hints about future monetary policy during his speech at the Press Conference; as always, his attitude and answers to journalists’ questions will be closely watched by market participants and the Euro will be highly affected.

The US Non Farm Payrolls are usually released Friday but this time they are released a day earlier due to Independence Day which is celebrated tomorrow. The market is likely to move very strongly at the time so we recommend caution.


[B][I]GBP/USD[/I][/B]

The United Kingdom continues to post positive economic data and this was confirmed once more yesterday when the Construction PMI showed a better than expected value. As a result the Pound strengthened and posted a new high at 1.7176.

2014.07.03-A-highly-volatile-double-feat

[B][I]Technical Outlook[/I][/B]

Although we had another bullish day, the momentum seems to fade away slowly and the Relative Strength Index starts to descend. Retracements are still anticipated but the fundamental scene is filled with important events which will highly influence price action. First potential support is located at 1.7140 while yesterday’s high is considered resistance.
[B][I]
Fundamental Outlook[/I][/B]

At 8:30 am GMT the Services PMI is released but its impact is usually lower than the one of the other two indexes released Tuesday and Wednesday. However, higher values than the anticipated 58.1 can strengthen the Pound and take the pair higher. An extra importance will have the US employment numbers released later in the day.
 

Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker[/url][/size]

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[size=small][B][I]FOREX NEWS: OPENING THE WEEK WITH RANGING PRICE ACTION

EUR/USD[/I][/B]

Forex News: Friday the bears continued to take price lower and touched support at 1.3585 but the day lacked volatility, mostly due to the fact that the United States celebrated Independence Day and US banks were closed.

2014.07.07-Opening-the-week-with-ranging

[B][I]Technical Outlook[/I][/B]

Today we are faced with a bounce-or-break scenario and the support at 1.3585 plays the main role. A bearish break would set the stage for a touch of the more important support located at 1.3520 but if sellers cannot maintain the momentum seen last week, we are likely to see a move back up into the zone around 1.3640. The Relative Strength Index is moving close to the 30 level which indicates an oversold market and slightly increases the chances of a bounce higher.

[B][I]Fundamental Outlook[/I][/B]

The day lacks major economic releases and the only notable indicator is the German Industrial Production scheduled at 6:00 am GMT. The indicator shows changes in industrial output but it is considered to have low impact on the Euro; however, higher numbers than the anticipated 0.3% usually strengthen the single currency.


[B][I]GBP/USD[/I][/B]

The Pair had a ranging day Friday but the bulls managed to surpass the previous high by a few pips before price started to move south. No major developments took place and Independence Day generated low trading volume.

2014.07.07-Opening-the-week-with-ranging

[B][I]Technical Outlook[/I][/B]

We consider there’s a high chance of another encounter today with the high located at 1.7180 but a real break is less likely to occur. To the down side, the first major support is located at 1.7095 but such a distance is too much to travel on a Monday that lacks major fundamental announcements. We anticipate a ranging day, with slow price action.

[B][I]Fundamental Outlook[/I][/B]

The United Kingdom didn’t schedule any major economic releases for today so price direction will be mostly influenced by the technical aspect.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: ALL EYES ON GERMAN TRADE BALANCE AND UK’S MANUFACTURING NUMBERS

EUR/USD[/I][/B]

Forex News: The pair traded in a 30 pip range yesterday as no major economic releases affected price movement and we saw a small bounce off support. Germany’s Industrial Production came out worse than anticipated but the event didn’t have a strong impact.

2014.07.08-All-eyes-on-German-Trade-Bala

[B][I]Technical Outlook[/I][/B]

According to the ranging behavior exhibited lately by the pair, the next possible move is a bounce higher off 1.3585 support, considering also the fact that the Relative Strength Index is moving upwards after a brief encounter with its 30 level; if this bounce occurs, the resistance at 1.3640 will be the next target but a break of support will make 1.3520 the immediate bearish destination.

[B][I]Fundamental Outlook
[/I][/B]
The German Trade Balance comes out today at 6:00 am GMT with an anticipated decrease from the previous 17.7B to 15.7B. The indicator shows the difference between imported and exported goods and a positive numbers means that more goods were exported than imported, a fact which usually strengthens the Euro.


[B][I]GBP/USD[/I][/B]

Overall the Pound had a bearish day but support wasn’t touched and price didn’t make any spectacular moves. Trading lacked major reversals or whipsaws.

2014.07.08-All-eyes-on-German-Trade-Bala

[B][I]Technical Outlook[/I][/B]

We consider that the pair’s first target is the support located at 1.7095 and once this retracement lower is completed, we expect the bullish trend to resume for another attempt to break 1.7180 resistance. A break of 1.7095 would encounter potential support at 1.7063 but today’s price action will most likely be decided by economic factors.

[B][I]Fundamental Outlook[/I][/B]

AT 8:30 am GMT the UK Manufacturing Production is released. This indicator shows the change in the total value of output produced by manufacturers and represents about 80% of the entire UK Industrial Production; higher numbers suggest increased economic activity and thus, a stronger Pound. The anticipated change is 0.5%, compared with last month’s 0.4%.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: US DOLLAR STILL WEAK AGAINST ITS COUNTERPARTS. FOMC MINUTES IN THE SPOTLIGHT

EUR/USD[/I][/B]

Forex News: Price moved north yesterday after bouncing for a second time off of 1.3585 support and the Euro bulls proved they are not yet ready to admit defeat. The rise was partly generated by a surprisingly better value of the German Trade Balance.

2014.07.09-US-Dollar-still-weak-against-

[B][I]Technical Outlook[/I][/B]

Latest price action indicates that the next destination of the pair is the resistance located at 1.3640 as price tried on two separate occasions to break 1.3585 but failed. However, if the bears manage to tip the scales in their favor by breaking 1.3585, the pair’s next target will become 1.3520 support. Our bias is mainly neutral on the pair as the daily range is about 30 pips and price movement is extremely slow.

[B][I]Fundamental Outlook[/I][/B]

The main event of the day is the release of the FOMC Meeting Minutes scheduled at 6:00 pm GMT. The document will offer insights into the reasons that stood behind the FOMC members’ vote regarding the US interest rate and will probably give some hints about future monetary direction. Usually this event creates strong movement so we recommend caution if trading at the time.

At 7:30 pm GMT, ECB President Mario Draghi will deliver a speech in London at the Tommaso Padoa-Schioppa Memorial Lecture. Although the speech is not directly related to ECB’ monetary policy, Draghi’s public appearances can always influence the Euro strongly and caution is recommended as well.


[B][I]GBP/USD[/I][/B]

The Pound lost ground against the US Dollar during the first part of yesterday’s trading session as the UK Manufacturing Production showed a totally disappointing decrease of -1.3%. Later in the day however, the bulls erased most of the losses.

2014.07.09-US-Dollar-still-weak-against-

[B][I]Technical Outlook[/I][/B]

Yesterday we saw an immediate rejection when price touched the support zone created at 1.7095, a fact that shows that bulls still have a lot of underlying strength and could very well take the pair into 1.7180 area. Despite bad UK economic data, the US Dollar cannot take the Pound lower and for the time being, support is holding so the chances of a new high have increased.

[B][I]Fundamental Outlook[/I][/B]

Today the United Kingdom didn’t schedule any market moving economic indicators so price direction will be influenced by the FOMC Meeting Minutes and by technical factors.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: THE GREENBACK CONTINUES TO LOSE GROUND. RESISTANCE LEVELS THREATENED

EUR/USD[/I][/B]

Forex News: Yesterday, before the FOMC Meeting Minutes, the pair rose to touch resistance as the US Dollar continued to lose ground against the Euro. The Minutes had a mixed impact and took the pair higher after an initial drop.

2014.07.10-The-greenback-continues-to-lo

[B][I]Technical Outlook[/I][/B]

The bulls have the opportunity to break 1.3640 resistance and to take the pair into 1.3675. Since we are trading in a range-bound market, support and resistance levels tend to have a greater importance than in a trending market so if price stalls at 1.3675 and the Relative Strength Index becomes overbought, we anticipate a bearish pullback.

[B][I]Fundamental Outlook[/I][/B]

The ECB will release their Monthly Bulletin today at 8:00 am GMT; the document will contain an economic outlook and economic expectations from the Bank’s perspective and also reveals the data which was analyzed when the ECB made the Interest Rate decision. The event is considered to have a medium impact on the Euro unless surprising data is revealed.


[B][I]GBP/USD[/I][/B]

The pair touched support once again but the release of the FOMC Meeting Minutes generated a push north and currently the pair is headed towards 1.7180 top.

2014.07.10-The-greenback-continues-to-lo
[B][I]
Technical Outlook[/I][/B]

The US Dollar doesn’t seem to have an answer for Pound’s strength and the bears cannot break a single support level. Every time the pair touches the support at 1.7095, it bounces upwards but on the higher time frames, price is overbought and retracements lower are a distinct possibility. Until 1.7180 or 1.7095 is broken, out bias is neutral on the pair.

[B][I]Fundamental Outlook[/I][/B]

The Bank of England announces today the Interest Rate but no change is anticipated from the current 0.50% and probably the event will just create irregular volatility at the time of the release. If any hints are offered about future rate increases or if speculation takes over the market, we will probably see strong movement for the Pound. The scheduled time is 11:00 am GMT and we recommend caution if trading.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][i][b]FOREX NEWS: US DOLLAR WEAKENED BY EMPLOYMENT FIGURES. POUND AFFECTED BY CONSTRUCTION DATA

EUR/USD[/b][/i]

Forex News: Friday’s main event was without a doubt the disappointing number shown by the US Non Farm Payrolls (actual 209K; expected 231K). As a result, the US Dollar weakened and the pair moved above resistance.

2014.08.04-US-Dollar-weakened-by-employm

[i][b]Technical Outlook[/b][/i]

Today we expect a quiet day, with mostly ranging price action as the pair will probably take a “breather” after Friday’s strong move. However, the latest momentum favors the bulls and the first barrier in front of rising prices is located at 1.3445; support sits at 1.3400 but we don’t expect this level to be broken today.

[i][b]Fundamental Outlook[/b][/i]

The fundamental scene lacks major economic indicators today and this fact adds to our belief that price will not make any spectacular advances.


[i][b]GBP/USD[/b][/i]

The Pound was weakened Friday by a worse than anticipated Manufacturing PMI and that’s why the bulls couldn’t capitalize on the disappointing value of the US Non Farm Payrolls. The day belonged to the bears as price closed lower than the opening of the day.

2014.08.04-US-Dollar-weakened-by-employm

[i][b]Technical Outlook[/b][/i]

Pound weakness continues to be seen and the bears continue to dominate although the US economy shows signs of contraction and the Relative Strength Index is trading below the 30 level for an extended period of time. First potential support is represented by Friday’s low (1.6809) but today’s price action will be mainly influenced by the value of the Construction PMI.

[i][b]Fundamental Outlook[/b][/i]

At 8:30 am GMT the day’s only notable indicator of the day is released: United Kingdom’s Construction PMI. This is a survey derived from the opinions of purchasing managers from the Construction sector and acts as a leading indicator of economic health. The anticipated value is 62.1 which is a decrease from the previous 62.6 and lower than expected numbers will most likely weaken the Pound further.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: ECONOMIC DATA BRINGS PRICE OUT OF MONDAY’S TIGHT RANGE

EUR/USD[/I][/B]

Forex News: Yesterday’s trading session lacked volatility almost completely as the market took a “breather” after Friday’s stronger than usual movement. No economic indicators were released and this contributed to the ranging price action.

2014.08.05-Economic-data-brings-price-ou

[B][I]Technical Outlook[/I][/B]

The minor resistance created at 1.3445 wasn’t threatened yesterday but this will be the first barrier which the bulls need to break in order to weaken last month’s downtrend. Support is located at 1.3400 and until either one of the mentioned levels is broken, the market will remain in a ranging phase. For the time being our bias is neutral, expecting a breakout.

[B][I]Fundamental Outlook[/I][/B]

The Euro Zone Retail Sales change percentage is released today at 9:00 am GMT and expected o increase to 0.4% from the previous 0.0%. Higher numbers suggest increased economic activity and usually strengthen the Euro as the retail sector is a major part of the European economy.

At 2:00 pm GMT the US Non Manufacturing PMI is released, showing the opinions of purchasing managers outside of the manufacturing sector about economic and business conditions. The expected value is 56.6, an increase from the previous 56.0 and under normal circumstances, higher than anticipated values are beneficial for the US Dollar.


[B][I]GBP/USD[/I][/B]

United Kingdom’s Construction PMI showed yesterday a slightly better than anticipated reading and as a result the Pound climbed but overall we had a slow trading day.

2014.08.05-Economic-data-brings-price-ou

[B][I]Technical Outlook[/I][/B]

For the time being the bulls lack the strength needed to reverse the medium term downtrend and we are likely to see another encounter with the support located at 1.6809. If this potential encounter will occur, and support will hold, price is likely to shoot up, considering the fact that the pair needs a bullish correction after such an extended drop as the one seen during the last month.

[B][I]Fundamental Outlook[/I][/B]

United Kingdom’s Services PMI is announced today at 8:30 am GMT and expected to increase from the previous 57.7 to 58.1. The indicator is an index derived from the opinions of purchasing managers from the Services sector regarding current and future business conditions and acts as a leading indicator of economic health. Readings above 50 indicate optimism and numbers above estimates usually strengthen the Pound, driving the pair higher.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: ECB PRESS CONFERENCE: THE DAY’S MOST INFLUENTIAL EVENT

EUR/USD[/I][/B]

Forex News: The Euro dropped yesterday as the German Factory Orders showed an extremely disappointing figure, while demand for the US Dollar increased on the back of a better than expected value of the American Trade Balance.

2014.08.07-ECB-Press-Conference-The-days

[B][I]Technical Outlook[/I][/B]

After a brief stall at 1.3365 minor support, the pair resumed bearish price action and broke the level with relative ease. If this previous minor support will turn into resistance today (after a test from below, followed by a potential bounce lower), the next target will become the key level at 1.3295, but today price direction will be heavily influenced by Mario Draghi’s speech at the ECB Press Conference.

[B][I]Fundamental Outlook[/I][/B]

At 11:45 am GMT the ECB will announce their decision regarding the Interest Rate (no change is anticipated) but the real market mover will probably be the Press Conference held 45 minutes later. ECB President Mario Draghi will read a prepared statement and afterwards, he will answer journalists’ questions about monetary policy, rate changes and economic recovery plans. This second part of the Press Conference is usually the one that creates the highest volatility as traders around the world try to interpret Draghi’s attitude and answers. We recommend caution if trading at the time because price action can be erratic during the Conference.


[B][I]GBP/USD[/I][/B]

United Kingdom’s Manufacturing output showed a figure of 0.3%, lower than the anticipated 0.7%, a fact which weakened the Pound and allowed the US Dollar to resume the pair’s downwards movement.

2014.08.07-ECB-Press-Conference-The-days

[B][I]Technical Outlook[/I][/B]

Yesterday’s price action created minor resistance around 1.6885 and the first support is located at 1.6809. The medium term downtrend seems to be resumed but as a confirmation, the level at 1.6809 must be broken today. Bearish pressure is present and the Pound is weakened by the latest disappointing figures but a major role will be played today by the BOE decision regarding the interest rate.

[B][I]Fundamental Outlook[/I][/B]

At 11:00 am GMT the Bank of England will announce the interest rate and although no changes are anticipated (currently the rate is set at 0.50%), the event is likely to generate some volatility. The outcome of the rate decision is somewhat known as almost all analysts expect it to remain unchanged but caution is recommended nonetheless.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: THE WEEK FINISHES WITH THE GREENBACK IN CONTROL

EUR/USD[/I][/B]

Forex News: Yesterday’s ECB Press Conference generated mixed movement as the pair reversed direction several times. ECB President Mario Draghi mentioned that rates in Europe will remain lower for a longer period than they will in the United States.

2014.08.08-The-week-finishes-with-the-gr

[B][I]Technical Outlook[/I][/B]

The Euro was weakened by Mario Draghi’s comments and this bearish momentum is likely to continue throughout today’s session. First support and barrier in front of falling prices is located in the zone around 1.3330 and a break would open the door for a move into the more important support located at 1.3295; first resistance is represented by the level at 1.3400.

[B][I]Fundamental Outlook[/I][/B]

Both the Euro and the US Dollar have a calm day ahead as far as economic news releases are concerned. Price action will be mostly influenced by the technical aspect.


[B][I]GBP/USD[/I][/B]

The Bank of England maintained the interest rate value unchanged and as a result the event didn’t create volatility or strong directional movement.

2014.08.08-The-week-finishes-with-the-gr

[B][I]Technical Outlook[/I][/B]

The pair remained confined between 1.6885 resistance and 1.6809 support. Today we are likely to see a breakout which will probably favor the bears, considering the fact that the medium term trend is down. The next major support is located at 1.6700 but we don’t expect such a distance to be traveled in one day even if 1.6809 is broken decisively; first resistance is represented by the top created around 1.6885.

[B][I]Fundamental Outlook[/I][/B]

United Kingdom’s Trade Balance is released today at 8:30 am GMT, showing the difference between imported and exported goods. The indicator is considered to have a mild impact but higher numbers than the anticipated -8.9B will most likely strengthen the Pound, driving the pair higher.

We hope you had a profitable trading week and we wish you a relaxing weekend.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: IRAQ TENSIONS MAKE THEIR MARK ON THE CURRENCY MARKET

EUR/USD[/I][/B]

US planes bombed several military targets in Iraq as tensions escalated and the Americans intervened in order to prevent a massacre of religious minorities. The Dollar was negatively affected by these events and the pair climbed Friday for the entire day.

2014.08.11-Iraq-tensions-make-their-mark

[B][I]Technical Outlook[/I][/B]

At the moment market participants are moving to safe-haven assets as the UD Dollar is considered too volatile and risky. The current rally is likely to continue thru 1.3445 resistance if the political situation doesn’t calm down; the Dollar’s movement will be highly affected by this new tension and S/R levels might be broken with ease so we recommend caution for the next days.

[B][I]Fundamental Outlook[/I][/B]

The day lacks major economic indicators and we expect slow movement but a lot depends on the developments in Iraq.


[B][I]GBP/USD[/I][/B]

Minor support was broken and the Pound weakened Friday against the greenback although the latter was affected by the Iraq crisis.

2014.08.11-Iraq-tensions-make-their-mark

[B][I]Technical Outlook[/I][/B]

The bearish move is overextended as the Relative Strength Index is again trading in oversold territory. Today we are likely to see a move higher which can find resistance at the recently broken level of 1.6809 but, as mentioned above, price will be prone to sudden changes of direction, depending on Iraq developments. First support is located at 1.6700 but this level is not likely to be touched today.

[B][I]Fundamental Outlook[/I][/B]

The United Kingdom didn’t schedule any major news releases today but we recommend caution, considering the political environment.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: GERMANY’S ZEW SURVEY IN THE FOCUS

EUR/USD[/I][/B]

Yesterday the pair grinded lower but movement was very sluggish as the day didn’t have any major news releases and tensions in Iraq and Ukraine eased.

2014.08.12-Germanys-ZEW-Survey-in-the-fo

[B][I]Technical Outlook[/I][/B]

Price returned below 1.3400, a fact which shows that bulls lack the strength needed to stage a full scale reversal. Lately the pair is confined between 1.3445 resistance and 1.3330 support but we slightly favor a move into the mentioned support, especially if the bears can maintain price below the current level of 1.3400.

[B][I]Fundamental Outlook[/I][/B]

The day’s only major event is the release of the German ZEW Economic Sentiment scheduled at 9:00 am GMT. This is a survey based on the opinions of German analysts and institutional investors and it’s focused on their opinions regarding a 6 month outlook. The nature of their jobs keeps them highly informed on the economic situation and at the same time, increases the importance of this survey. The expected number is 18.2, a significant decrease from the previous 27.1 and lower numbers will most likely weaken the Euro.


[B][I]GBP/USD[/I][/B]

The pair had an extremely slow day yesterday and no major developments took place on either the fundamental or the technical scene.

2014.08.12-Germanys-ZEW-Survey-in-the-fo

[B][I]Technical Outlook[/I][/B]

We expect a touch of 1.6809 resistance before downside movement can resume and it is important to note that price is printing lower lows while the Relative Strength Index is showing higher lows, a behavior known as regular bullish divergence. Often times this divergence results in moves north but the medium term downtrend is strong so we are likely to see bearish movement after an upside correction.

[B][I]Fundamental Outlook[/I][/B]

The United Kingdom didn’t schedule any important indicators for the day thus the pair’s direction will be mainly affected by the technical aspect.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: US DOLLAR AFFECTED BY RETAIL SALES FIGURES, POUND INFLUENCED BY CARNEY’S SPEECH

EUR/USD[/I][/B]

The German ZEW survey disappointed drastically by posting a reading of 8.6, while the anticipated number was 18.2 and as a result the Euro lost ground in front of the greenback for almost the entire day.

2014.08.13-US-Dollar-affected-by-Retail-

[B][I]Technical Outlook[/I][/B]

As soon as price came in close vicinity of 1.3330 support, a bullish reaction could be seen and this indicates that price may stall or even reverse at this level. The medium term downtrend is bearish but a new low couldn’t be established since last week and the pair is at a crossroad: a break of 1.3330 will most likely take price into 1.3295 key support while a bounce would suggest that 1.3400 will be revisited.

[B][I]Fundamental Outlook[/I][/B]

The US Retail Sales will be the day’s main event for the pair. Higher values suggest a thriving economy where people are comfortable spending and this fuels further economic activity. The scheduled time of the release is 12:30 pm GMT and the expected change is 0.2%, same as last month; better than anticipated values usually strengthen the US Dollar.


[B][I]GBP/USD[/I][/B]

As expected the Pound bounced higher yesterday, completing a bullish retracement which took price into the first minor resistance. No major economic indicators were released and the move was mostly generated by technical factors.

2014.08.13-US-Dollar-affected-by-Retail-

[B][I]Technical Outlook[/I][/B]

We are faced with a bounce-or-break scenario at the current level of 1.6809 and from a technical point of view a drop would be in order since yesterday’s move was just a correction to the downtrend. A bullish break of the current level will make 1.6885 the next target while a bounce lower will probably take the pair close to the major support at 1.6700.

[B][I]Fundamental Outlook[/I][/B]

Price direction will be heavily influenced today by UK’s Claimant Count Change, an indicator which tracks changes in the number of unemployed people compared to the last month. It will be released at 8:30 am GMT with an anticipated change of -29.7 (previous -36.3) and higher numbers will most likely weaken the Pound. An hour later the BOE will release the Inflation Report and Governor Mark Carney will deliver a speech regarding its contents. This is likely to be the main event of the day for the Pound, depending on the Governor’s attitude and matters discussed.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: EURO BACK IN THE SPOTLIGHT FOR THE RELEASE OF THE GERMAN GDP

EUR/USD[/I][/B]

Forex News: Yesterday the US Dollar weakened on the back of a disappointing figure shown by the Retail Sales and this allowed the pair to climb above 1.3400 support.

2014.08.14-Euro-back-in-the-spotlight-fo

[B][I]Technical Outlook[/I][/B]

As we saw, even if 1.3400 was pierced yesterday, the bulls couldn’t maintain price above this level and this suggests that we might see more of the ranging movement experienced lately. Another encounter with 1.3330 is very possible now that we’ve seen price rejected by resistance. If 1.3330 is broken, the pair is likely to visit 1.3295, while 1.3400 still remains the first resistance.

[B][I]Fundamental Outlook[/I][/B]

The day’s main event will be the release of the German Preliminary Gross Domestic Product which is scheduled for release at 6:00 am GMT and is expected to decrease from the previous 0.8% to -0.1%. The GDP is considered to be an economy’s main performance gauge and since Germany accounts for the major part of Europe’s economy, lower numbers will most likely have a negative impact on the single currency.


[B][I]GBP/USD[/I][/B]

As revealed by the Inflation Report, the Bank of England cut their expectations for economic growth and also, BOE Governor Carney mentioned that interest rates will not be increased in the near future. The pound weakened significantly as a result and major support was touched.

2014.08.14-Euro-back-in-the-spotlight-fo

[B][I]Technical Outlook[/I][/B]

The key support level at 1.6700 was touched as the pair traveled substantially lower. This huge drop is likely to continue throughout today but it’s also very possible to see a stall before the level will be clearly broken. The Relative Strength Index has reached oversold territory again and we are likely to see some sort of bullish movement. The next support is located at 1.6550, a level visible on a Daily chart.

[B][I]Fundamental Outlook[/I][/B]

There are no major economic releases scheduled for the Pound today and price action will be influenced mostly by the technical aspect.

 
Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

ource of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: BOTH PAIRS BELOW RESISTANCE. RETESTS ANTICIPATED

EUR/USD[/I][/B]

Forex News: Germany’s Preliminary Gross Domestic Product showed a lower than expected value, but despite this, the Euro strengthened throughout the day. However, resistance couldn’t be broken and the pair shows signs of indecision.

2014.08.15-Both-pairs-below-resistance.-

[B][I]Technical Outlook[/I][/B]

The resistance at 1.3400 was pierced again yesterday but, similar to a day before, price returned almost immediately below the level. This shows underlying bearish pressure and warns about a potential drop below the support located at 1.3300. However, if during the day the bulls manage to close a significant candle above 1.3400, we are likely to see a move in close vicinity of 1.3445.

[B][I]Fundamental Outlook[/I][/B]

French and Italian banks will be closed today, celebrating Assumption Day and no major news comes out for the Euro. The US Dollar will be affected by the Producer Price Index which is released at 12:30 pm GMT and is expected to post a change of 0.1% compared with last month’s 0.4%. The PPI has inflationary implications because a higher price charged by producers will be eventually transmitted to the consumer.

At 1:55 pm GMT the University of Michigan will release the Consumer Sentiment survey based on the opinions of about 500 consumers. The expected figure is 82.7, an increase from the prior 81.8 and higher numbers are usually beneficial for the US Dollar because confidence among consumers is often a leading indicator of consumer spending.


[B][I]GBP/USD[/I][/B]

The pair had a slow trading session but we saw a new low followed by a bullish retracement which didn’t manage to take price above 1.6700.

2014.08.15-Both-pairs-below-resistance.-

[B][I]Technical Outlook[/I][/B]

Today we expect a test of the level at 1.6700 and this test will decide whether the pair can continue lower towards 1.6550 or a stronger move north is in order. The Relative Strength Index is coming out of oversold territory and this favors bullish moves but the bears control the market at the moment so all moves to the upside should be considered just corrections.

[B][I]Fundamental Outlook[/I][/B]

United Kingdom’s second estimate of the Gross Domestic Product is released today at 8:30 am GMT. The expected change is 0.8%, same as last month and under normal circumstances, higher numbers benefit the Pound as the GDP is an economy’s main gauge of overall performance.

We hope you had a profitable trading week and we wish you a relaxing weekend.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: A LACKLUSTER FUNDAMENTAL SCENE BRINGS A SLOW MONDAY

EUR/USD[/I][/B]

United States’ Producer Price Index released Friday posted a value which was anticipated and the event didn’t have a huge impact on the US Dollar. The day lacked major developments and price action was mostly ranging.

2014.08.18-A-lackluster-fundamental-scen

[B][I]Technical Outlook[/I][/B]

The pair remained confined between 1.3400 resistance and 1.3330 support but another attempt to break resistance was made; however, this attempt didn’t succeed and the week finished very close to the mentioned level. For the time being, the bulls lack the strength needed to shift the balance in their favor and another encounter with 1.3330 support is a high probability scenario, especially if today resistance is not clearly broken

[B][I]Fundamental Outlook[/I][/B]

The only notable event of the day is the release of the German Bundesbank Monthly Report which usually contains notes about economic conditions and an economic outlook. The release is scheduled at 10:00 am GMT and has a higher impact if the point of view expressed differs from the one of the European Central Bank.


[B][I]GBP/USD[/I][/B]

The second estimate of the British Gross Domestic Product released Friday didn’t surprise in any way and the pair had a slow day, without major direction changes.

2014.08.18-A-lackluster-fundamental-scen

[B][I]Technical Outlook[/I][/B]

The pair is trading close to 1.6700, a level which acts like a magnet for price for the time being. For today we anticipate more of the ranging movement experienced Friday but keep in mind that the Relative Strength Index is coming out of oversold territory on a four-hour chart and on a Daily chart it still shows an oversold condition. This favors bullish action for the day and increases the chances of a move above 1.6700.

[B][I]Fundamental Outlook[/I][/B]

The United Kingdom didn’t schedule any high-impact releases for the day, thus price direction will be mostly influenced by the technical aspect.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: INFLATION INDICATORS IN THE SPOTLIGHT

EUR/USD[/I][/B]

Forex News: The Euro had a tough first day of the week against the Dollar and we saw the pair travel south after a slow start of the session; however, major support is still intact.

2014.08.19-Inflation-indicators-in-the-s

[B][I]Technical Outlook[/I][/B]

It is clearer now that 1.3400 resistance cannot be broken for the time being and that 1.3330 support is the next target of the pair. We can see several four-hour candles with long upper wicks, a fact that indicates rejection and on top of that, once price started to move south, it did so with strong momentum (full bearish candles). The day’s direction will be also affected by the fundamental scene which becomes busier today.

[B][I]Fundamental Outlook[/I][/B]

An important inflation gauge is released today by the United States: the Consumer Price index. This indicator tracks changes in the price paid by consumers for the goods they purchase and basically shows the buying power of the US Dollar. The event is scheduled at 12:30 pm GMT and a drop is anticipated, from the previous 0.3% to 0.1%; if this comes true, the greenback will most likely weaken against its counterparts.


[B][I]GBP/USD[/I][/B]

The week opened with a gap to the upside, a fact generated by a Sunday Times interview with Mark Carney who reignited speculation of a rate hike.

2014.08.19-Inflation-indicators-in-the-s

[B][I]Technical Outlook[/I][/B]

More often than not, weekly gaps tend to be filled, thus another move below 1.6700 might be in order. However, the time factor is not known, meaning that even if the gap will be closed, we cannot know when this is going to happen. For the time being, 1.6700 is not clearly broken and at least a touch of this level will probably occur today.

[B][I]Fundamental Outlook[/I][/B]

United Kingdom’s Consumer Price Index will also be released today, at 8:30 am GMT. Inflation in the UK is close to BOE’s targeted range but the indicator is important nonetheless because it is taken into consideration when the interest rate decision is made. Today’s expected change is 1.8% while last month’s was 1.9% and lower numbers usually weaken the Pound.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: US DOLLAR AND POUND PRONE TO SHARP MOVES. MEETING MINUTES HOLD CENTER STAGE

EUR/USD[/I][/B]

Forex News: Positive data released yesterday by the American economy allowed the US Dollar to continue to gain ground against its counterparts and yesterday we saw a clear break of support.

2014.08.20-US-Dollar-and-Pound-prone-to-

[B][I]Technical Outlook[/I][/B]

The recent break of 1.3330 support is likely a true one but before price can travel south, we need to see a retest of the recently broken level. Adding to this short term bullish view is the oversold condition signaled by the Relative Strength Index on the four hour chart above. If the retest results in a bounce lower, the first target is represented by 1.3295 key level.

[B][I]Fundamental Outlook[/I][/B]

The main event of the day will be the release of FOMC’s Meeting Minutes which will offer insights into the reasons which affected their latest decision regarding the interest rate and will possibly contain hints about future monetary policy direction. The release is scheduled at 6:00 pm GMT and a high impact is anticipated.


[B][I]GBP/USD[/I][/B]

United Kingdom’s Consumer Price Index posted a surprising drop and as a result the Pound weakened substantially against the greenback, taking the pair below support.

2014.08.20-US-Dollar-and-Pound-prone-to-

[B][I]Technical Outlook[/I][/B]

Similar to the EUR/USD, we anticipate a bullish retracement before the downside momentum will resume; however, the control clearly belongs to the bears so any moves north should be considered simple pullbacks for the time being. The Relative Strength Index is below 30 again, favoring short term retracements into the first potential resistance located around 1.6660.

[B][I]Fundamental Outlook[/I][/B]

The Bank of England will release today at 8:30 am GMT the details of their latest votes on interest rate and Asset Purchase Facility. If all 9 members voted to keep the rate unchanged, it could mean that an increase will not be seen in the immediate future. If the members’ opinions start to diverge, the release will have a higher impact that usual. The FOMC Meeting Minutes will also have a direct impact on the pair’s movement.


Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: THE US DOLLAR CAPITALIZES ON A HAWKISH FED ATTITUDE

EUR/USD[/I][/B]

The pair continued to slide lower during the day, before the FOMC Minutes which further strengthened the US Dollar as the Fed showed optimism regarding the job market and inflation.

2014.08.21-The-US-Dollar-capitalizes-on-

[B][I]Technical Outlook[/I][/B]

We saw a new low of the year reached by the pair and for the time being the bears are dominating the market. The key support at 1.3295 was clearly broken and if price returns to it for a retest and successfully bounces lower, we might see a touch of 1.3200 in the near future. Keep in mind that the Relative Strength Index is deep in oversold territory, a fact which favors a touch from below of 1.3295.

[B][I]Fundamental Outlook[/I][/B]

The French Manufacturing PMI is released early at 7:00 am GMT and expected to climb slightly from 47.8 to 47.9. It will be followed half an hour later by the German indicator with the same name, which is expected to drop from the previous 52.4 to 51.7. Both are leading indicators of economic health for two of the most important countries in the Euro Zone and higher numbers are usually beneficial for the Euro.

The Philly Fed Manufacturing survey will be announced at 2:00 pm GMT and a hefty drop is anticipated, from the previous 23.9 to 19.7. The survey is based on the opinions of purchasing managers from the manufacturing sector and usually, its importance is increased if the actual numbers differ a lot from the anticipated ones.


[B][I]GBP/USD[/I][/B]

Bank of England’s Minutes released yesterday showed that 2 out of 9 members voted for a rate increase, a fact which boosted the Pound higher but the hawkish attitude of the FOMC Meeting Minutes allowed the pair to move lower.

2014.08.21-The-US-Dollar-capitalizes-on-
[B][I]
Technical Outlook[/I][/B]

The zone around 1.6660 is now confirmed resistance since yesterday we saw clear rejection off that level and the Dollar run might extend into the support located at 1.6550. A lot depends on the Retail Sales numbers and the technical aspect will be somewhat secondary.

[B][I]Fundamental Outlook[/I][/B]

United Kingdom’s Retail Sales numbers come out today at 8:30 am GMT with a positive change expected, from the previous 0.1% to 0.4%. Such an increase will further strengthen the Pound as sales made at a retail level represent the major part of economic activity.

 
Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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[size=small][B][I]FOREX NEWS: THE SECOND DAY OF THE JACKSON HOLE SYMPOSIUM BRINGS US TWO IMPORTANT SPEECHES

EUR/USD[/I][/B]

Forex News: Yesterday’s trading session was mostly controlled by the bulls although Philadelphia Manufacturing data was better than anticipated, a fact which would normally benefit the US Dollar. However, major levels were not threatened.

2014.08.22-The-second-day-of-the-Jackson

[B][I]Technical Outlook[/I][/B]

The current bullish move is likely to continue until 1.3295 is touched. The next potential turning point is 1.3330 but this move is considered just a retracement to the downtrend which was overextended and in need of a breather. The low at 1.3240 will act as potential support if the downtrend resumes and the next key level is located at 1.3200.

[B][I]Fundamental Outlook[/I][/B]

Today is the second day of the Jackson Hole Symposium and probably the most important one because both Fed Chairwoman Janet Yellen and ECB President Mario Draghi will deliver speeches at the Federal Reserve Bank of Kansas City. Yellen’s speech is scheduled at 2:00 pm GMT while Draghi’s will follow at 6:30 pm GMT; the main topic for both speeches will be the labor market, which is always a delicate subject that can strongly influence the market so caution is recommended.


[B][I]GBP/USD[/I][/B]

The pair ranged for almost the entire day, with a slightly bullish bias despite the fact that Retail Sales dropped during the previous month.

2014.08.22-The-second-day-of-the-Jackson

[B][I]Technical Outlook[/I][/B]

There is still room for the pair to move to the upside as no major resistance is near current price, but on the other hand, 1.6550 support is very close and it will most likely act as a magnet for price. A lot depends on Janet Yellen’s speech, which will probably influence heavily the US Dollar.

[B][I]Technical Outlook[/I][/B]

The United Kingdom didn’t schedule any major news releases for the day and market participants will focus on the two important speeches mentioned above.
We hope you had a profitable trading week and we wish you a relaxing weekend.

 
Written by: Bogdan Giulvezan

The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

Source of article from the [url=http://www.gdmfx.com]best forex broker.[/url][/size]

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