Cable's strength continues but momentum might not last
Cable briefly broke out of its range around last week’s NFP, moving up to nearly $1.29 before retreating again this week. Expectations that the Fed will cut in June have held in March so far while American inflation for February came in slightly higher than the consensus on Tuesday as widely expected.
Although the golden cross of the 20 and 50 SMAs and the rejection on 12 March suggest a short-term buy signal, the price is very close to overbought based on both the slow stochastic and Bollinger Bands. Even if the price breaches $1.39, $1.40 is a round number and likely to be a strong psychological resistance.
American PPI and Michigan sentiment could have some effect this week, but the critical releases are next week, British inflation and the Fed’s meeting, both on Wednesday, followed by the BoE on Thursday. In the meantime, early February’s high around $1.275 might flip to being a support given the relatively strong upward reaction around there after inflation.
The opinions here are my own; they do not reflect those of Exness. This is not a recommendation to trade.
Although the golden cross of the 20 and 50 SMAs and the rejection on 12 March suggest a short-term buy signal, the price is very close to overbought based on both the slow stochastic and Bollinger Bands. Even if the price breaches $1.39, $1.40 is a round number and likely to be a strong psychological resistance.
American PPI and Michigan sentiment could have some effect this week, but the critical releases are next week, British inflation and the Fed’s meeting, both on Wednesday, followed by the BoE on Thursday. In the meantime, early February’s high around $1.275 might flip to being a support given the relatively strong upward reaction around there after inflation.
The opinions here are my own; they do not reflect those of Exness. This is not a recommendation to trade.