FOREX NEWS: OPENING THE WEEK WITH RANGING PRICE ACTION
EUR/USD
Forex News: Friday the bears continued to take price lower and touched support at 1.3585 but the day lacked volatility, mostly due to the fact that the United States celebrated Independence Day and US banks were closed.
Technical Outlook
Today we are faced with a bounce-or-break scenario and the support at 1.3585 plays the main role. A bearish break would set the stage for a touch of the more important support located at 1.3520 but if sellers cannot maintain the momentum seen last week, we are likely to see a move back up into the zone around 1.3640. The Relative Strength Index is moving close to the 30 level which indicates an oversold market and slightly increases the chances of a bounce higher.
Fundamental Outlook
The day lacks major economic releases and the only notable indicator is the German Industrial Production scheduled at 6:00 am GMT. The indicator shows changes in industrial output but it is considered to have low impact on the Euro; however, higher numbers than the anticipated 0.3% usually strengthen the single currency.
GBP/USD
The Pair had a ranging day Friday but the bulls managed to surpass the previous high by a few pips before price started to move south. No major developments took place and Independence Day generated low trading volume.
Technical Outlook
We consider there’s a high chance of another encounter today with the high located at 1.7180 but a real break is less likely to occur. To the down side, the first major support is located at 1.7095 but such a distance is too much to travel on a Monday that lacks major fundamental announcements. We anticipate a ranging day, with slow price action.
Fundamental Outlook
The United Kingdom didn’t schedule any major economic releases for today so price direction will be mostly influenced by the technical aspect.