|Day's Range||1.753 - 1.763|
|52 Week Range||1.61852 - 1.84513|
While six-week long descending trend-line continue restricting the AUDUSD’s near-term upside, the pair has to sustain its dip beneath the 0.7340 horizontal-support in order to revisit the recent low around 0.7310. In case the pair continue declining below 0.7310, the 61.8% FE level of 0.7255 could please the sellers. On the upside, a clear break of 0.7420 TL can trigger the pair’s recovery towards 0.7475-80 region, which if conquered could escalate the rise to 0.7510 and the 0.7550 resistances. Assuming that Bulls keep fueling the quote beyond 0.7550, the 0.7605, the 0. ...
The UK’s retail sales figures dropped unexpectedly in June. Sales declined by 0.5% in June compared to a growth of 1.4% in May. YoY Retail sales grew by 2.9, below analysts expectation of 3.7%. Pound hits a 10-month low near 1.30 versus the US dollar.
The British Pound continues its fall on Wednesday morning, trading at 1.3087, down 0.18%. The pound falls on reports that Theresa May could face a defeat on the latest Brexit Vote.
The pound sterling has been trying to strengthen over the last few days but has not succeeded so far. The major fear of the pound traders lies in Brexit negotiations which are paused or disputed every now and then. Jobless claims in the UK rose by 7,800 against the expectations at 2,300 and the previous number of 7,700.
It’s been a very lively and busy few days in the UK. There are many scenarios and opinions flying about at the moment, but what do we make of the current situation? Let’s take a step back and look at the facts.
Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways with his post as Brexit Secretary. Global stocks rise on Tuesday morning ahead of US earnings season.
The full impact of the move has yet to be priced in with the possibility that PM May now places a more “enthusiastic believer” in the role which could result in a shift in Brexit negotiations going forward.
Following its another bounce off the 0.7360-55 horizontal-support, the AUDUSD again confronts a month-old descending trend-line, around 0.7395-0.7400, which if broken could trigger the pair’s recovery towards the 0.7420 and the 0.7445-50 resistances. Assuming that Aussie buyers rule trade-sentiments after 0.7450, the 0.7475, the 0.7500 and the 0.7530 are likely following numbers that can appear in their radars. Meanwhile, pair’s dip beneath the 0.7355 can reprint 0.7330 & 0.7310 on the chart whereas the 0.7300 and the 61.8% FE level of 0.7260 may please the sellers afterwards. ...
With an upward slanting trend-channel portraying the GBPAUD’s strength, the pair is likely to maintain its gradual advances in direction to the 1.8000 round-figure, with 1.7960 being immediate resistance to watch. Should prices rally beyond 1.8000, the 1.8015, the 1.8085-90 horizontal-barrier and the 1.8115, comprising channel’s upper-line, may grab market attention.
GBPUSD’s recent U-turn, mainly due to three MPC members voting in favor of a rate-change, seems fueling the pair towards 1.3230-40 resistance-zone and then to the 1.3310 barrier. However, six-week long descending trend-line, at 1.3410 now, could restrict the pair’s further upside, failing to which highlights the 1.3480 and the 1.3550 resistances ahead of challenging the buyers’ strength by 200-day SMA level of 1.3600 and the 1.3610-20 region. In case if the pair can’t sustain latest pullback, the 1.3080 seems immediate support to watch ahead of observing the 1. ...
With two-month long downward slanting trend-line restricting the GBPJPY’s upside, the pair continues to signal the 146.20 support re-test unless clearing the 147.75 TL barrier. Meanwhile, pair’s successful break above 147.75 trend-line enables it to claim the 148.10 and the 148.70 resistances but the 200-day SMA level of 149.80, adjacent to 150.00 psychological-magnet, could disappoint the Bulls.
Britain’s statistics continue to indicate a slowdown in the UK economy. Today’s data showed a decline in industrial production by 0.8% during April against a forecast growth of 0.1%.
GBPJPY’s U-turn from 144.00-143.90 horizontal-support seems presently helping the pair to aim for 146.00, breaking which 146.80 and 147.00 could entertain the counter-trend traders before pleasing them with 147.40 and the 148.00 numbers to north.
Even after trying multiple times during the last one-week, the GBPUSD is still not succeeded in its attempts to conquer eleven-month old ascending trend-line, at 1.3480 now; though, the 200-day SMA level of 1.3555 acts as a strong near-term upside barrier for the pair. Hence, the pair has to provide a daily close clearing either the 1.3480 or the 1.3555 in order to register higher momentum. Considering comparative weakness of the GBP, the pair is more likely to break the 1.3480 mark, which in-turn could quickly drag the quote to 1.3400 and then to the 1. ...
The AUD is going down again after taking a short break. The RBA meeting minutes did not affect the currency very much, as everything was quite clear beforehand. The Chinese stats were, on the contrary, very influential.
The pound sterling is around its January lows as we are heading into the third week of May. The decision of the Bank of England to leave the interest rates and the overall monetary policy unchanged disappointed the market.
The upcoming Bank of England’s interest rate decision on Thursday will have GBP traders paying attention to every detail possible. The recent GDP (Gross Domestic Product) was hard to swallow by GBP bulls, as it triggered a wave of selling in the GBP pairs.
With the AUDUSD’s break of nearly a year-old ascending trend-line, the pair seems vulnerable enough to revisit the 0.7505-0.7500 horizontal-support but the 0.7550 may become immediate rest. In case if Bears refrain to respect the 0.7500 round-figure and oversold RSI, the 0.7460, the 0.7420 and the 0.7370 consecutive numbers may mark their presence on the chart.
Having failed to sustain its pullback from 1.5890-95 horizontal-area, the EURAUD seems again coming down to re-test the same support-zone, breaking which the 1.5855 and the 1.5825 might not take too long to appear on the chart. Alike EURAUD, the GBPAUD also took a U-turn from near-term horizontal-region, the 1.8175-85 is the case here, but couldn’t rise much then after.
Successful break of short-term descending trend-line and an ascending trend-channel favors the AUDUSD’s further upside with 0.7900 being nearby resistance to counter prior to meeting the channel’s upper-line of 0.7930. In case if the pair disobeys channel formation by surpassing 0.7930, the 0.7985-90 horizontal-line seems crucial for buyers to watch, breaking which chances of the quote’s rally to 0.8045-50 can’t be denied. If the pair declines below 1.7595, the 1.7525 and the 1.7495, comprising 100-day SMA, are likely intermediate halts that it can avail prior to reigniting the importance of an upward slanting trend-line, at 1.7385 now.
Despite AUDUSD’s inability to extend recent north-run beyond 0.8135, the pair is less likely to decline much unless clearing the seven-week old ascending trend-line, at 0.8030 now. As a result, pair’s present up-moves are expected to confront the 0.8125-35 region but overbought RSI might restrict its additional rise. Should buyers refrain to respect RSI and surpass the 0.8135 on a daily closing basis, the mid-2015 high of 0.8165 and the 61.8% FE level of 0.8310, which is also the 2015’s yearly high, could please the Bulls. On the contrary, a D1 close beneath the 0. ...
The Australian dollar has rallied in the last 2 weeks from a low of US75c to around US76.60c against the greenback, defying analysts’ predictions that the currency would tumble if the US Federal Reserve stuck to their plan to hike rates further next year and if new tax legislation in the US was passed. Also, A new tax legislation that was introduced by US President Donald Trump which envisions cutting the corporate tax rate to 20 percent among other things is sure to be signed into law this week by the US president after his own Republican party passed the tax bill through both the Senate and the house of representatives.
Considering AUDUSD’s pullback from 0.7695–0.7700 horizontal-region, followed by its U-turn from 0.7635, the pair seems less likely to offer much trading opportunities unless clearing either the 0.7635 support or the 0.7700 resistance-mark. However, comparative strength of the USD indicates more downside of the pair, which in-turn indicates brighter chances of its drop to 0.7600 and then to the 0.7580 after conquering the 0.7635 rest-point. During the pair’s additional declines beneath 0.7580, the 0.7530 and the 0.7500 round-figure might please sellers. Alternatively, an upside break of 0. ...
Although better than expected UK Earnings triggered the GBPUSD’s bounce, the pair still remains below a short-term ascending trend-line, at 1.3370, that it broke yesterday. Given the prices continue declining after the 1.3245 SMA figure’s break, the 1.3170-60 region, comprising six-month old upward slanting TL, could challenge the Bears. GBPJPY is another GBP pair which took a U-turn after British employment details but still trades beneath recent TL break and hence continue remaining weaker.