|Day's Range||1.834 - 1.843|
|52 Week Range||1.7212 - 1.8879|
The Australian dollar can’t find a way out of the darkness. The AUD has been falling since January 2019 and it seems that the situation only worsens
It was already a terrible trading week for the British Pound thanks to the political risk circus in Westminster and Brexit related uncertainty.
The Dollar Index retreated from a three-week high with prices trading around 97.10 as of writing. Although the Index remains bullish on the daily charts, bears can still make a return if prices dip back below the 97.00 psychological support level.
What would be seen as a major threat to the Sterling resuming its painful descent would be if the BoE issues a downbeat policy statement, suggesting a downward revision in growth and inflation forecasts which obstruct the need to raise rates.
AUDUSD’s sustained trading below 50-day SMA portray the pair’s weakness that can drag it to 0.7015 and the 0.7000 round-figure once 0.7070 immediate support breaks. However, a downward slanting trend-line, at 0.6950 now, could confine the pair’s downside past 0.7000, if not then sellers can again aim for early-month low around 0.6730. Alternatively, the 50-day SMA level of 0.7180, followed by 0.7235, can keep restricting the pair ‘s near-term advances. Given the pair manage to surpass the 0.7235, the 0.7280 and the 0. ...
While three-week long descending trend-line continue restricting AUDUSD’s near-term upside, the pair has to close beneath 0.7020 in order to please sellers with fresh lows. In doing so, the quote can drop to 0.7000 round-figure and then to the 0.6930-25 support-zone ahead of aiming 61.8% FE level of 0.6900. Alternatively, the 0.7085 is likely immediate resistances for the pair prior to confronting the 0.7115 TL barrier, breaking which 0.7160 and 50-day SMA level of 0.7190 may come back on the chart. Moreover, pair’s sustained trading beyond 0.7190 could flash 0.7235-40 and the 0. ...
Unless breaking the 1.2715-20 resistance-confluence, GBPUSD’s recent pullback can continue nurturing doubts about its strength to target the 1.2850 level. Given the pair’s ability to rise above 146.00, the 146.50, the 146.80 and the 147.30 can please the buyers.
The pair is range bound ahead of tomorrow’s brexit vote as tension remains high amid broad based USD weakness.
Considering AUDUSD’s dip beneath a month-old ascending trend-line, the pair is likely to visit the 0.7180 support but the 0.7150 horizontal-stop could confine its further downside. In case there prevails additional weakness on the part of the pair past-0.7150, the 0.7120 and the 0.7050 seem crucial rest-points to watch as break of which highlights the 0.7020 and the 0.7000 come-back. On the upside, the 0.7240 and the 0.7260 can restrict the pair’s near-term advances ahead of fueling it to 0.7275-80 region. Moreover, successful break of 0.7280 may escalate the recovery to the 0. ...
The US equity market was indicated to open with a small loss in early Monday. EU indices were flat to up at midday as Brexit hopes to provide support. Asian market was mostly higher despite a bombshell allegation against Nissan Chairperson Carlos Ghosn.
The Brexit news had a negative impact on the pound, the US futures market was indicating a positive open for equity indices in the early hours of the morning.
Five months to the deadline, Britain is yet to reach a deal with the European Union on how to go about Brexit. Steve Eisman believes that now is the right time to short two U.K banks as expectations of the U.K leaving Europe without a deal soars.
Traders are waiting for the Super Thursday. The Bank of England will release the interest rate. Of course, the market doesn’t anticipate any changes to the rate, however, it will try to catch the mood of the central bank. If the BOE is optimistic, the GBP will be supported.
It’s early to talk about the strengthening of the AUD because up to now, there are no crucial fundamental factors that may become drivers for the Australian currency. Let’s go through all the factors that can be a market mover for the Australian Dollar.
Analysts looking for key drivers over the near-term that will ultimately decide the fate of a number of currencies, economies and ultimately whether a new crisis dawns.
EURGBP is presently struggling with 50-day SMA level of 0.8940 in order to aim for the 0.8980 trend-line resistance, breaking which 0.9000 and the 0.9030 may regain market attention. With the immediate descending trend-line presently questioning the GBPAUD’s rise around 1.8185, the pair can drop back to 1.8055 and the 1.8000 round-figure but the 1.7930-15 and the 1.7815 TL might confine its further declines. Meanwhile, break of the 1.8185 trend-line can propel the pair to 1.8290 & 1.8350 resistances but the 1.8400 could limit the pair’s advances afterwards.
The AUDUSD pair shows a descending impulse inside the long-term downtrend. The main downside target is the support line of the major channel at 0.7125.
One of the best setups at the beginning of the week can be found on the GBPUSD. The pair is on the back foot and the main reasons for that, from the fundamental point of view, are the weaker PMI number and the new comments from Mr. Barnier regarding Brexit. This comes in line with the technical analysis, which was giving us a sell signal as early as on Friday.
The British Pound performed its sharpest strengthening in 7 months on the softening tone of the EU in the negotiations about Brexit. China pulls down global stocks.
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.