FOREX NEWS: BEARISH PRESSURE MOUNTS. STRONG RESISTANCE AHEAD
EUR/USD
Forex News: Friday the buyers remained in control, taking the pair above the previous top at 1.1170. The economic scene was calm, without major releases and most of the move was technical.
Technical Outlook
After establishing a low at 1.1075 the pair started to move up, resuming the uptrend and breaking 1.1170. The first upper target is located at 1.1240 but it must be noted that the Relative Strength Index (RSI) is showing bearish divergence, which is present when price is making a higher high and the oscillator is making a lower high. This divergence and the overbought condition of the RSI are early warnings that price may bounce lower but overall the picture remains bullish.
Fundamental Outlook
The day’s only notable event is the Eurogroup Meeting, attended by Finance Ministers from the Euro Area member states, as well as other personalities from the political and financial scene. The impact on the currency varies depending on the matters discussed, but caution should be used throughout the day.
GBP/USD
Friday the pair erased an earlier drop occurred Thursday and moved back into the resistance at 1.3050. The bias is still bullish but bearish pressure has increased.
Technical Outlook
The sudden drop after the first encounter with 1.3050 resistance is a warning sign that the uptrend may be coming to a stop or at least that it is weaker than before. However, the bearish move was completely erased, so the bulls still have enough “juice” for a break of 1.3050; if that happens, the next key level is located at 1.3430 but it’s way too far to be reached during one day. A bounce at 1.3050 will probably take the pair into 1.2990 but our bias for today is mostly neutral.
Fundamental Outlook
The Pound will not be affected today by major economic releases but United Kingdom representatives will attend the Eurogroup Meetings and this could generate increased volatility.