DailyFX.com - Highlight Points: - Even more Fed-speak indicating hawkishness has continued the drive higher in the Dow Jones FXCM Dollar Index, and this has brought to question two previously strong trends in EUR/USD, but this strength hasn’t necessarily been even-handed: While EUR/USD appears to be on the cusp of establishing a new down-trend as major,...
Formation - Expanding falling channel Outlook - Cautiously bullish Sterling's sharp fall left it oversold as per 15-min RSI, with the indicator forming bullish divergence pattern with price chart in the NY session. The subsequent attempts to recover losses have failed around 1.4220, still the intraday support of 1.4190 (daily low) is being defended. Thus odds...
The impulsive decline seen in early Europe has been recovered, thus marking another failure to sustain below 125.00, thus extending the ongoing squeeze between 125.0 handle and falling channel resistance. A daily close back inside the channel would invalidate arguments to remain on the sell side, thus leading to short unwind resulting in the cross cutting through...
The EUR managed to recover above 1.0964 (50% of Mar-May rally) on Friday, and thus, extended gains to trade above 1.10 handle today. Further gains are seen only in case of an hourly close above the resistance at 1.1020. In such a case, the spot could rise to 1.1053 (61.8% of May-June rally). Meanwhile, a failure to take out 1.1020 could see the spot fall back to...
The GBP/USD spot was rejected at the hourly 50-MA; pushing the pair below 1.5549 (50% of June rally, hourly 200-MA) and 1.5538-1.5540 (inverted head and shoulder extended neckline). Only an hourly close below 1.5538 would open doors for a sell-off to 1.55 levels. The dip below 1.5538 hs already happened, but a failure to see an hourly close below the same...