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  • GBP/USD Forecast – British Pound Remains Sell on Rallies Vs US Dollar

    GBP/USD Forecast – British Pound Remains Sell on Rallies Vs US Dollar

    • – The British Pound declined sharply recently and moved below the 1.3150 support against the US Dollar.
    • – The GBP/USD pair recently broke a short-term bearish trend line with resistance at 1.3055 on the hourly chart.
    • – Today in China, the Caixin Services PMI for Sep 2017 was released.
    • – The outcome was below the forecast of 51.5, as there was a decline in the PMI from 52.7 to 50.6.

     

    China’s Caixin Services PMI

    Recently in China, the Caixin Services PMI for Sep 2017 was released. The market was positioned for a decline in the PMI from the last reading of 52.7 to 51.5.

     

    However, the actual result was below the forecast of 51.5, as there was a decline in the PMI from 52.7 to 50.6. Looking at the Composite Output Index, there was a sharp decline from 52.4 to 51.4 in September 2017, which is a new a three-month low. The report added that:

     

    The slowdown was driven by weaker increases in output at both manufacturing and services companies. A drop in the seasonally adjusted Caixin China General Services Business Activity Index from 52.7 to 50.6 in September pointed to only a marginal increase in services activity that was the slowest for 21 months.

     

    Overall, the market sentiment is favoring the US Dollar and that’s why the GBP/USD pair recoveries are likely to be capped by the 1.3150-1.3200 resistance levels.

     

    GBP/USD Technical Analysis

    The British Pound remained under a lot of bearish pressure and recently moved below the 1.3200 handle against the US Dollar. The GBP/USD pair even broke the 1.3150 support, settled below the 100 hourly simple moving average and traded as low as 1.3026.

     

    GBP/USD Technical Analysis British Pound US Dollar

     

    The pair is currently correcting higher and just moved above the 23.6% Fib retracement level of the last decline from the 1.3291 high to 1.3026 low. Moreover, there was a break above a short-term bearish trend line with resistance at 1.3055 on the hourly chart.

     

    It seems like the pair could continue to correct higher and may test another bearish trend line on the same chart with resistance at 1.3105. However, the most important resistance sits near the 50% Fib retracement level of the last decline from the 1.3291 high to 1.3026 low at 1.3150.

     

    Any major upsides could face sellers on the topside near 1.3150 and 1.3180. Selling rallies remain a good deal as long as there is no daily close above 1.3200.

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  • NZD/USD Forecast – New Zealand Dollar Faces Crucial Hurdle Near 0.6980

    NZD/USD Forecast – New Zealand Dollar Faces Crucial Hurdle Near 0.6980

    • – The New Zealand dollar after a decline towards 0.6940 against the US Dollar found support and recovered.
    • – The NZD/USD pair is currently facing a major resistance near the 0.6980-0.7000 pivot area.
    • – Earlier during the Asian session, the Caixin China Services PMI for March 2017 was released, which posted a decline from 52.6 to 52.2.

     

    Caixin China Services PMI

    Today in China, the Caixin China Services PMI for March 2017 was released by the Markit Economics. The market was positioned for an increase from the last reading of 52.6 to 53.2.

     

    However, the outcome below the forecast, as the Caixin China Services PMI posted a decline from 52.6 to 52.2 in March 2017. It means there was a weak rise in total Chinese output at the end of the first quarter. The report added that “March data pointed to weaker growth in composite new orders, with the rate of expansion edging down to a four-month low. This reflected weaker increases in new work across both monitored sectors“.

     

    Overall, the result not impressive, dented the market sentiment, and pushed the NZD/USD a few pips lower towards 0.6960.

     

    NZD/USD Technical Analysis

    The New Zealand dollar was under pressure this week against the US Dollar, and broke the 0.6980 support area. The NZD/USD pair traded as low as 0.6936 from where a recovery was initiated. However, the same broken support at 0.6980 is now acting as a hurdle for more gains.

     

    NZD/USD Technical Analysis New Zealand US Dollar

     

    The pair has moved above the 23.6% Fib retracement level of the last decline from the 0.7022 low to 0.6936 low, which is a positive sign. However, it is facing a major resistance near 0.6980-0.7000. The stated level coincides with the 100 hourly simple moving average at 0.6985.

     

    Moreover, the 50% Fib retracement level of the last decline from the 0.7022 low to 0.6936 low is also around the same level. We must also note the 0.7000 physiological level is also above it. So, it looks like the pair is facing a tough barrier near 0.6980-0.7000. So, as long as the pair is below 0.7000, the downside pressure remains intact for a push back towards 0.6940.

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