November 22, 2017 Facebook  twitter  Google+
Support Threatened, US Dollar in Charge Ahead of FOMC Meeting Minutes
 
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EUR/USD

Forex News: The US Dollar won the battle against the Euro yesterday, boosted also by a better than expected Manufacturing PMI survey. Key support is threatened and seems like volume is back after the winter holidays.

Technical Outlook

The pair is currently testing the zone of support around 1.0366 and reached a low that was last seen in the year 2003. If the current support zone is broken decisively, price will be ‘free falling’ because there is no known support below this zone (the levels below are very old and we cannot anticipate how price will behave there). The Relative Strength Index and Stochastic are approaching oversold and this may call for bullish pullbacks.

Fundamental Outlook

Today’s highlight is the release of the FOMC Meeting Minutes, scheduled at 7:00 pm GMT. This document contains details about the latest Fed Meeting and may offer hints about future monetary policy (rate hikes more importantly); if this is the case, we will probably get a strong reaction from the greenback.

 

GBP/USD

The US Dollar scored a major victory against the Pound yesterday, taking the pair about 100 pips lower and reaching the support at 1.2200. British Manufacturing data was better than anticipated but this didn’t have a strong impact on price movement.

Technical Outlook

The support at 1.2200 is important for short term price action and we expect the pair to react to it by bouncing higher. A break of this level will open the door for a move into 1.2090, which is a key level, better seen on the Daily charts. The oscillators are still showing good downside momentum and this increases the chances of a break of 1.2200, while to the upside, 1.2250 is the first resistance.

Fundamental Outlook

At 9:30 am GMT the British Construction PMI is released and expected to show a value of 52.6 compared to the previous 52.8. This survey acts as a leading indicator of economic health focused on the construction sector but its impact is usually mild, with higher values strengthening the Pound.

 

 
04-January-2017
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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