INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar regains some ground vs. euro, yen
- Forex -Yen stands tall as dollar weakened by Fed’s cautious stance
- Forex-Dollar sell off ebbs, but on track for weekly losses on Fed outlook
EUR/USD is currently trading with a bullish bias. Following the break above the pivot level 1.1178, Euro appears to have developed a bullish trend. We anticipate a breakout above 1.1380 for us to continue long with our ideal target at 1.1492. Alternatively, we wait for minor pullbacks towards 1.1291 for us to execute buy orders. This view can only be invalidated should the anticipated pullback go below 1.1267. If the latter is the case, then we will be looking for short positions with our target at 1.09935. This pair should be alongside GBP/JPY, and GBP/USD. These pairs have a strong positive correlation of up to +0.89 and will likely move in a similar direction. Only buy or sell Euro if pound dollar is giving the same signal.
The pound slipped lower against the U.S. dollar on Friday, pulling away from a one-month peak as the greenback recovered from losses posted after the Federal Reserve’s latest policy decision.GBP/USD hit 1.4440 during European morning trade, the session low; the pair subsequently consolidated at 1.4426, shedding 0.39% .Cable was likely to find support at 1.4219, Thursday’s low and resistance at 1.4517, the high of February 16. The dollar came under broad selling pressure after the Fed left its monetary policy unchanged on Wednesday and said that it is likely to raise interest rates twice this year – and not four times, as initially estimated.Fed policymakers said the U.S. economy faces risks from an uncertain global economy, although moderate growth and “strong job gains” would allow it to tighten policy this year.
- BUY GBP/USD ABOVE 1.4540 TARGET 1.4560 1.4590 SL 1.4510
- SELL GBP/USD BELOW 1.4450 TARGET 1.4430 1.4380 SL 1.4480
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