British Pound Trades In Positive Territory, But Needs Catalyst
British pound held an important support area against the US dollar, but looks like searching for a reason to move higher in the near term.
Japanese Tertiary Industry Index released by the Ministry of Economy, Trade and Industry registered a reading of -0.3%, compared with the last gain of 0.2% in December 2014.
In the UK, the British Retail Consortium (BRC) Retail Sales Monitor was released which came in at 0.2% whereas the market was expecting it to be around 0.5% in January 2015.
Australian House Price Index released by the Australian Bureau of Statistics increased by 1.9% in the fourth quarter of 2014, compared to the last rise of 1.5%.
Australian National Australia Bank Business Confidence registered a reading of 3 in January, compared with the last reading of 2.
Chinese Consumer Price Index released by the National Bureau of Statistics of China increased by 0.3%, compared with the forecast of 0.4% in January 2015 on the monthly basis change.
Chinese Producer Price Index was also released which decline by 4.3% in January 2015.
USDJPY continues to consolidate last week’s gain and preparing for the next move.
The Euro was seen nervous recently with all Greece drama, and even positive releases in the Euro area failed to ignite an upward reaction in the EURUSD pair. There is a monster bearish trend line formed on the 4 hour chart, which is acting as a hurdle for the pair. The most important point is that the 100 (4H) moving average is also sitting just below the mentioned trend line. So, there is a major resistance formed around the 1.1410-20 area.
Intraday Support Level – 1.1300
Intraday Resistance Level – 1.1420
Overall, as long as the pair is below the 100 MA – 4H it might continue trading lower.
A break above the trend line could take the pair towards the 1.1500 level.
If the EURUSD pair fails to move higher, then immediate support is seen around the 1.1300 level. Any further losses might take it towards the 1.1250 level.
The British pound managed to stay above an important support against the US dollar, but showed bearish signs against the Swiss franc. There was a critical bearish trend line on the 4-hour chart of the GBPCHF pair, which was pierced by sellers recently. This particular break might discourage the British pound buyers in the near term, and might act as a resistance if the pair moves higher moving ahead. The most important resistance is around the last high of 1.4180, which might continue to act as a barrier in the near term.
Intraday Support Level – 1.4020
Intraday Resistance Level – 1.4150
Selling rallies around the 1.4150 level line look like a good option.
A break above the same might call for more gains moving ahead.
On the downside, the swing area is around the 50% fib retracement level of the last leg from the 1.3778 low to 1.4183 high where buyers might appear moving ahead.
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New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
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