FOREX NEWS: THE BALANCE OF POWER SHIFTS AGAIN. INDECISION TAKES OVER
EUR/USD
Forex News: Yesterday was a slow day on the fundamental scene but the pair didn’t lack action and showed a perfect bounce at support, followed by a touch of resistance. It remained capped and a breakout didn’t occur.
Technical Outlook
Price is bouncing between 1.0650 support and 1.0710 resistance and so far we don’t have a clear winner. If the current move extends past 1.0710, it will encounter the 50 period Exponential Moving Average and the way it will behave there, will probably decide the next direction. If the bulls can close a full candle above the 50 EMA, we may expect to see a resurgence of the uptrend but a bounce lower will show that the balance of power is shifting towards the short side, so we will be looking for a break of 1.0650.
Fundamental Outlook
The only notable event of the day is the release of the U.S. Unemployment Claims, an indicator that shows how many people asked for unemployment related benefits during the previous week. Usually the impact is low-to-medium, mostly because the indicator is released every week, but higher numbers than the forecast 249K can weaken the US Dollar. The time of the release is 1:30 pm GMT.
GBP/USD
After a brief stall at the 50 period Exponential Moving Average, the bulls took control again and now resistance is tested, with price confined between support and resistance.
Technical Outlook
The latest impulse is bullish and the pair is now trading above the 50 period EMA, with the oscillators showing a strong momentum. However, upside action is capped by 1.2550 resistance and if this barrier is not breached early into the session, we expect a drop below the Moving Average and possibly below 1.2480 support. Overall the picture is mixed and neither side is in clear control.
Fundamental Outlook
Today at 6:30 pm GMT, Bank of England Governor Mark Carney will deliver a speech at the Bank of England Inclusion Reception, in London. As always, speeches of heads of central banks should be treated with caution because volatility may surge, depending on the speaker’s attitude and matters discussed.