FOREX NEWS: ALL EYES ON GERMAN TRADE BALANCE AND UK’S MANUFACTURING NUMBERS
EUR/USD
Forex News: The pair traded in a 30 pip range yesterday as no major economic releases affected price movement and we saw a small bounce off support. Germany’s Industrial Production came out worse than anticipated but the event didn’t have a strong impact.
Technical Outlook
According to the ranging behavior exhibited lately by the pair, the next possible move is a bounce higher off 1.3585 support, considering also the fact that the Relative Strength Index is moving upwards after a brief encounter with its 30 level; if this bounce occurs, the resistance at 1.3640 will be the next target but a break of support will make 1.3520 the immediate bearish destination.
Fundamental Outlook
The German Trade Balance comes out today at 6:00 am GMT with an anticipated decrease from the previous 17.7B to 15.7B. The indicator shows the difference between imported and exported goods and a positive numbers means that more goods were exported than imported, a fact which usually strengthens the Euro.
GBP/USD
Overall the Pound had a bearish day but support wasn’t touched and price didn’t make any spectacular moves. Trading lacked major reversals or whipsaws.
Technical Outlook
We consider that the pair’s first target is the support located at 1.7095 and once this retracement lower is completed, we expect the bullish trend to resume for another attempt to break 1.7180 resistance. A break of 1.7095 would encounter potential support at 1.7063 but today’s price action will most likely be decided by economic factors.
Fundamental Outlook
AT 8:30 am GMT the UK Manufacturing Production is released. This indicator shows the change in the total value of output produced by manufacturers and represents about 80% of the entire UK Industrial Production; higher numbers suggest increased economic activity and thus, a stronger Pound. The anticipated change is 0.5%, compared with last month’s 0.4%.