FOREX NEWS: BEARISH PRESSURE ESCALATES, SUPPORT LEVELS THREATENED
EUR/USD
Forex News: The pair had a bearish session yesterday, on the back of a stronger US Dollar, boosted partly by higher than expected values posted by the JOLTS Job Openings.
Technical Outlook
Price broke the 50 period Exponential Moving Average and the support at 1.0900, showing strong bearish momentum, so we anticipate a move into 1.0850. At the time of writing the pair is showing rejection at the previous low (1.0875) but this hurdle will probably be taken out soon. If the support at 1.0850 is broken, we will probably see a move to close the weekly gap in the near future, but this scenario will be invalidated for now if price moves back above the 50 period EMA.
Fundamental Outlook
ECB President Mario Draghi will speak today at the Dutch House of Representatives, about the impact of monetary policy. The effect of this speech is not known but as usual, caution should be used whenever heads of central banks speak publicly. The scheduled time is 12:00 pm GMT.
GBP/USD
The pair had a mixed session yesterday, first dropping into support and then bouncing higher from the confluence zone created by the 50 EMA and the level at 1.2905. For now the pair is still in an uptrend but bearish pressure has increased.
Technical Outlook
Price is facing an important support zone created by the Exponential Moving Average and the level at 1.2905. Judging by yesterday’s trading session, price is reacting to this zone because it moved higher immediately after touching it, but as long as the pair stays below 1.2965, we expect a drop through this zone and into 1.2855 – 1.2850. The oscillators are showing good downside momentum and are not oversold, further increasing our bearish bias; however, keep in mind that we are still in an uptrend, so the possibility of a move up shouldn’t be ruled out.
Fundamental Outlook
The Pound has another light day in terms of economic releases, but this doesn’t mean that the pair will have a slow trading day; however, the technical aspect will prevail.