2015.05.26 :Forex News: American inflation data and U.K. GDP – the day’s main market movers
EUR/USD
Forex News: The testimonies of Yellen and Draghi did not create the anticipated volatility and the pair had another slow, choppy day. Both support and resistance are still intact and the ranging period is still not over.
Technical Outlook
Although it’s mostly flat, the 50 period Exponential Moving Average seems to offer a minimum of resistance as seen from yesterday’s price action. However, the pair is moving sideways and lately it isn’t even trying to break the resistance at 1.1440 or the support at 1.1270. Until a clean break of the mentioned levels occurs, the pair’s movement will remain choppy and unpredictable.
Fundamental Outlook
American inflation data will be today’s main event. The US Consumer Price Index, which is the primary gauge of inflation will be released at 1:30 pm GMT and is expected to change -0.6%, compared with the previous -0.4%. Fed Chair Yellen mentioned during a previous testimony that inflation is expected to grow towards 2.0%, but so far the numbers are still dropping; if today we see another dip, the US Dollar is likely to be negatively affected.
GBP/USD
The British Bankers’ Association Mortgage Approvals came out close to the anticipated value but the Pound continued to strengthen throughout the day and major resistance was touched.
Technical Outlook
The resistance located at 1.5540 was touched yesterday and price quickly reacted by moving lower; the Relative Strength Index was overbought and this contributed to the bounce. Today we expect price to remain between 1.5540 resistance and the 50 period Exponential Moving Average but a break of either of them will probably determine the next medium term direction. Another bounce at resistance would imply that lower prices will follow.
Fundamental Outlook
At 9:30 am GMT the second estimate of the British Gross Domestic Product is released (forecast 0.5%) and can have a strong impact on the Pound since the GDP is an economy’s main performance gauge; however, this is the second version of the indicator and tends to have a lower impact than the Preliminary version.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.
Source of article from the best forex broker.
EUR/USD
Forex News: The testimonies of Yellen and Draghi did not create the anticipated volatility and the pair had another slow, choppy day. Both support and resistance are still intact and the ranging period is still not over.
Technical Outlook
Although it’s mostly flat, the 50 period Exponential Moving Average seems to offer a minimum of resistance as seen from yesterday’s price action. However, the pair is moving sideways and lately it isn’t even trying to break the resistance at 1.1440 or the support at 1.1270. Until a clean break of the mentioned levels occurs, the pair’s movement will remain choppy and unpredictable.
Fundamental Outlook
American inflation data will be today’s main event. The US Consumer Price Index, which is the primary gauge of inflation will be released at 1:30 pm GMT and is expected to change -0.6%, compared with the previous -0.4%. Fed Chair Yellen mentioned during a previous testimony that inflation is expected to grow towards 2.0%, but so far the numbers are still dropping; if today we see another dip, the US Dollar is likely to be negatively affected.
GBP/USD
The British Bankers’ Association Mortgage Approvals came out close to the anticipated value but the Pound continued to strengthen throughout the day and major resistance was touched.
Technical Outlook
The resistance located at 1.5540 was touched yesterday and price quickly reacted by moving lower; the Relative Strength Index was overbought and this contributed to the bounce. Today we expect price to remain between 1.5540 resistance and the 50 period Exponential Moving Average but a break of either of them will probably determine the next medium term direction. Another bounce at resistance would imply that lower prices will follow.
Fundamental Outlook
At 9:30 am GMT the second estimate of the British Gross Domestic Product is released (forecast 0.5%) and can have a strong impact on the Pound since the GDP is an economy’s main performance gauge; however, this is the second version of the indicator and tends to have a lower impact than the Preliminary version.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.
Source of article from the best forex broker.
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