The pair sharply fell yesterday after the release of the FOMC Minutes from the last meeting of the regulator in December. The Minutes showed that the officials are concerned with falling unemployment in the US that in the near future might result in higher inflation. However, it was noted that due to uncertainties regarding Donald Trump’s fiscal policy plans, the pace of further monetary policy tightening is hard to forecast. At present, the Fed is predicting 3 rate hikes in 2017.
Additionally, the Dollar remains under pressure prior to the publication of data on the US labour market, due tomorrow. Strong reading on the Nonfarm Payrolls could provide support to the American currency.
Support and resistance
The pair turned down having failed its 38.2% Fibonacci fan line. Both the RSI and Composite are showing Bearish patterns suggesting the fall could continue.
Support levels: 115.95 (local lows), 114.89 (March 2016 highs), 114.42 (November 2016 highs).
Resistance levels: 118.60 (local highs), 120.29 (July 2015 lows), 121.33 (January 2016 highs).
Short positions can be opened from the level of 115.95 with targets at 114.89, 114.42 and stop-loss at 116.30.
Long positions can be opened from the level of 118.60 with targets at 120.29, 121.33 and stop-loss at 118.17.
---------- Post added 01-06-2017 at 12:49 PM ---------- Previous post was 01-05-2017 at 01:42 PM ----------
GBP/USD: general review
The pair significantly grew yesterday amid a substantial weakening in the US Dollar that remains under pressure after the publication of the FOMC Minutes in the middle of the week. The Minutes, despite been quite hawkish, showed that further path of monetary policy tightening in the US is uncertain as the effect to the economy of the promised fiscal stimulus by Donald Trump is unknown yet. The market seems to agree with the regulator about high level of uncertainty, as the Dollar continues falling despite strong statistics that keep coming out in the US.
Additional support to the Pound came from strong data on the Markit Services PMI. In December, the index rose from 55.2 to 56.2 points, well above forecasts.
Today attention needs to be paid to data on the Nonfarm Payrolls in the US.
Support and resistance
On the 4-hour chart, the pair turned down having failed its long-term SMA200, a breakout of which could lead to a growth continuation. However, the Composite has formed a divergence with the RSI and price, suggesting a decline possibility.
Support levels: 1.2322 (local lows), 1.2297 (November 2016 lows), 1.2206 (local lows).
Resistance levels: 1.2433 (local highs), 1.2505 (local highs), 1.2542 (local highs).
Long positions can be opened from the level of 1.2443 with targets at 1.2505, 1.2542 and stop-loss at 1.2412. Validity – 1-2 days.
Short positions can be opened from the level of 1.2297 with the target at 1.2206 and stop-loss at 1.2322. Validity – 1-2 days.
Forex forum India - Introduction.
The international foreign exchange market provides opportunities for deriving high-yield and high-risk profit from currency rate fluctuations. Success of a trader depends on many factors; one of them is a trading platform the broker offers for operating on the market. Today most forex brokerage companies and their customers prefer MetaTrader 4 и MetaTrader 5 terminals. If you go for MetaTrader platforms as well, be sure − mt5.com forex forum has been designed for you.
Forex forum India ─ Trading discussions.
On our forum you will find relevant forex forecasts and have a chance to join discussions held by experts of the currency market, professional traders and those who are new to Forex. These discussions will bring answers to all your questions. Moreover, you will be able to express your opinion, get useful information, ask for help or, on the contrary, give someone helping hand. Everyone willing to learn something new and share the knowledge gained is welcome!
Forex forum India − Socializing with brokers and traders (about brokers).
The forum contains a rating of companies rendering brokerage services based on traders’ opinions. You can also share the impressions a certain forex broker left on you, provide your assessment of its services quality and also tell about your positive or negative experience of working with a brokerage company. Your comments will help other traders avoid mistakes and choose a reliable broker to cooperate with.
Random socializing on Forex forum India
Our forum is a good way to have some rest from work and communicate with friends on miscellaneous topics. This is a realm of anecdotes, jokes, caricatures, contests, sports news discussions, real life stories and off-topic unleashed. However, since trading is a lifestyle rather than a profession, trading related topics might be discussed as well.
Bonuses for socializing on Forex forum India
This forex forum has been created by traders for traders and is not meant for making profit. Nevertheless, mt5.com enables authors of posts to earn forex bonuses that can be employed in trading on an account of one of the forum sponsors. These money presents are symbols of gratitude to all professional forex traders for time they spend on our forum.