EUR/USD
Forex News: Despite better than anticipated US data, the US Dollar remained in the negative territory and the pair climbed after a spike below the 50 period EMA and below 1.1775 support.
Technical Outlook
Price has reached again the important resistance zone between 1.1840 and 1.1875 but the Stochastic has entered overbought and the Relative Strength Index is approaching that territory. This is usually an early signal that the pair may be rebounding lower in the near future, and we expect that bounce to happen around 1.1875. The bias remains bullish as long as the pair is trading above the 50 period EMA.
Fundamental Outlook
At 2:00 pm GMT the U.S. Existing Home Sales are released, showing the annualized number of houses sold during the last month. The forecast is 5.30 Million but the impact is usually low-to-medium, with higher numbers strengthening the greenback.
At 11:30 pm GMT, Fed Chair Yellen will deliver a speech named "Monetary Policy Since the Financial Crisis". Caution is always recommended when heads of central banks speak but the late hour will probably diminish the impact on the market.
GBP/USD
The British Retail Sales disappointed yesterday and this generated a sharp drop but soon after, the pair reversed and erased all the losses. Overall price action remained choppy and without clear direction.
Technical Outlook
The pair is still ranging and cannot move above the 50 period EMA or below 1.3160. As long as it remains between these barriers and is showing choppy movement, our bias is neutral but a breakout will probably generate an extended move in that direction. The oscillators lack strong momentum but we can notice a candle with a very long lower wick, which is a clear sign of rejection at support.
Fundamental Outlook
The United Kingdom didn’t schedule major economic data releases for today so the technical aspect will take center stage.