FOREX NEWS: BULLISH PRESSURE MOUNTS AS SUPPORT HOLDS AND US DOLLAR WEAKENS
EUR/USD
Forex News: The pair remained below resistance ahead of the FOMC Meeting Minutes but the document didn’t show any clear signs of the Fed wanting to hike more often than already planned and this was mostly perceived as dovish by market participants so the pair showed again rejection at support.
Technical Outlook
It is clear now that 1.0630 support is holding and rejecting the pair higher, so we expect to see a move above 1.0680 and into the 50 period Exponential Moving Average before the mentioned support can be broken. If the confluence zone created by the 50 EMA and 1.0710 doesn’t hold, it would show that the pair is set to climb even further, possibly towards 1.0800 zone of resistance.
Fundamental Outlook
The day lacks major releases, but the most notable one is the ECB Monetary Policy Meeting Accounts, which is a document that reveals details of the latest ECB Meeting and the reasons behind their latest rate decision. The release usually has a medium impact, which can become stronger if hints about a rate change are revealed; the scheduled time is 11:30 am GMT.
GBP/USD
The Pound strengthened due to better than expected Services PMI and The FOMC Meeting Minutes didn’t help the Dollar recover the losses, so the pair had a bullish day, bouncing at support and breaking the 50 period Exponential Moving Average.
Technical Outlook
Considering that the sellers tried several times to break 1.2420 support zone but the pair bounced higher, we expect to see a move into 1.2550 in the near future. For now price is in a consolidation phase and neither side in in clear control from a longer term perspective but for the short term it looks like the bulls are winning the battle. As long as price remains above the 50 period Exponential Moving Average, our bias is bullish, expecting an extended move north.
Fundamental Outlook
The main price driver today will be the technical aspect, mainly because the currencies in the pair will not be affected by important releases.