FOREX NEWS: BEARS IN CONTROL BUT BULLISH PRESSURE MOUNTS
EUR/USD
Forex News: Yesterday the Euro was strongly affected by a German survey which showed that optimism among purchasing managers from the Manufacturing sector has increased. The better than expected value reversed a previous drop generated by the French counterpart of the same indicator.
Technical Outlook
At the moment price is re-testing the recently broken level of 1.3480 and if this results in a bounce lower, the level will turn into resistance and the door will be open for a move towards 1.3400 which is the next support. If 1.3480 doesn’t become resistance, the next level that can stop bullish movement is located at 1.3500.
Fundamental Outlook
At 8:00 am GMT the German IFO Business Climate is released and expected to show a value of 109.6. The survey draws its importance from the large sample of about 7,000 businesses which are asked to rate the current economic conditions and to give a 6-month outlook. Under normal circumstances, better than anticipated numbers strengthen the Euro and push the pair higher.
The US Durable Goods Orders come out at 12:30 pm GMT and a hefty increase is expected: 0.4% from the previous -0.9%. This is a leading indicator of production since more orders suggest that producers will have to increase their activity in order to fill them.
GBP/USD
United Kingdom’s Retail Sales disappointed as the value was lower than forecast and this fact triggered Pound weakness which took the pair below support.
Technical Outlook
The level at 1.7010 was broken decisively and lower prices may follow, but before that can happen, a pullback to the upside is very probable; the Relative Strength Index has already passed the 30 level, reaching oversold territory, a fact which increases bullish pressure. The first potential resistance is now located at 1.7010 while support sits at 1.6950 followed by 1.6920.
Fundamental Outlook
United Kingdom’s most important gauge of economic performance is announced today at 8:30 am GMT: the Gross Domestic Product. No change is expected from last month’s value of 0.8% but any fluctuations will most likely have a big impact.