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Weekly momentum confirms the bottom is very likely in place and this market will be pushing higher in the coming days. I expect USDJPY to form a local high around 110 area and retrace back to 109. A of today ( given no other information at hand ) I will be looking to establish long positions around 109.50 -109.00.
EURUSD gave up some the yesterday’s gains and finished the day at 1.0710. The pair is clearly awaiting French elections. France is a significant part of Eurozone and any threat to its integrity from elected leaders would have serious consequences in the FX market. I expect there will be very little going on in the price of EURUSD until we have a clear winner in France
May's speech was scheduled for 10:15 GMT but the first rumors had hit the market an hour earlier. Pound in a quarter of an hour lost about 70 pips which led to the short-lived panic of the bulls. When it became clear that May was announcing an early election pound fired up. From today's minimum to the maximum is about 390 pips. GBPUSD which has ended yesterday's session at 1.2560, now is above 1.28. We weren't so high since October 2016.
EURUSD lost almost all yesterday's gain in today's trading. The pair turned down from 1.0670 and closed the day at 1.0613.lower UK and German yields along with ongoing concerns about next weekend's French election put pressure on the euro. There were no surprises in German data as consumer price growth was confirmed at 0.2% for the month of March.
As expected Cable rallied from the lows and closed the day at the resistance just below 1.2500. As I mentioned yesterday, this level is a good short opportunity for bears but one must consider tomorrow's UK reports. It is likely that GBPUSD will be volatile. Its hard to know what to expect. Inflation figures trending higher but the Brexit still looms. The weekly momentum is still strongly overbought suggesting downside. I will be watching the resistance at 1.26 to sell this market again. Only a firm break above 1.2650 would suggest major sift in bearish sentiment in the short term. watch out tomorrow
The pair is still in a range trade but it shows some signs of bullish force behind. The fact the the market didnt break 110 ( after few attempts ) shows me that bears have not enough power to bring USDJPY down below that level. Its hard to say if it will rebound or will it stay here for few days and slightly drift down. Weekly momentum is fully oversold and it tells me, the higher prices are likely. I remain bullish but my long position is set to stop just below 110.
Cable traded in a narrow range and closed the day at 1.2466. It spiked earlier on and touched 1.2500 but sold off again. I expect the current zone (1.2550 – 1.2450) to form a channel, which could be traded on breakouts. Weekly momentum if fully overbought and lower prices are most likely to follow soon.
Stronger than expected service sector activity helped to propel GBP/USD in today's trading. This is another case when UK services PMI report has a significant impact on the British currency. Never to be ignored by serious FX traders! According to the PMI report, service sector activity accelerated at its fastest pace in 3 months.It helped to offset the negative sentiment caused by the lower manufacturing and construction PMI reports
Cable tumbled on the back of slower construction sector growth. PMI services are scheduled for release on Wednesday and if service sector activity eases alongside manufacturing and construction, GBP/USD could break 1.24 and hit a new 2 week low. Weekly momentum supports lower prices. I expect GBPUSD to print fresh lows and correct back up towards 1.2500 area.
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