FOREX NEWS: BUYERS RUN OUT OF STEAM AT RESISTANCE. WHAT’S NEXT FOR THE US DOLLAR?
EUR/USD
Forex News: As it was expected, yesterday the pair retraced lower after Friday’s strong climb but resistance was tested before that. The fundamental scene was calm, without important releases.
Technical Outlook
The pair tested the resistance at 1.0630, which proved a strong barrier in front of rising price but today we expect another encounter with the mentioned level and the way price behaves there will determine the next direction. If the barrier cannot be surpassed on the second attempt, it should be considered a sign that the bulls have run out of steam and that we will probably see a move below the 50 period Exponential Moving Average. On the other hand, a break of 1.0630 will open the door for a touch of 1.0680.
Fundamental Outlook
Similar to yesterday’s trading session, the technical aspect will prevail today because the pair will not be affected by major economic releases for the Euro or US Dollar.
GBP/USD
Yesterday’s trading session was rather slow, without major developments on either side. The bullish retracement seems complete now and we expect the bears to step back in.
Technical Outlook
The pair was in need of a bullish retracement, mostly due to the oversold condition of both oscillators but now that retracement seems complete so we expect a break of 1.2250 support and a touch of 1.2215. If 1.2250 is not broken today, the pair will either enter a ranging period or will continue higher until the 50 period Exponential Moving Average is hit.
Fundamental Outlook
The United Kingdom didn’t schedule any important economic releases for today, so the technical side will be the deciding factor for direction.