Euro And British Pound Consolidates Ahead Of Major Release
Euro and the British pound were mostly seen trading in a range, as the Forex market remained quiet during the past couple of sessions.
Chinese hosing price index, released by the National Bureau of Statistics registered a reading of -5.1% in January 2015, compared the preceding month in which it declined by 4.3%.
In Australia, the minutes of the Reserve Bank of Australia were one of the major risk events which caused some swing moves in the Aussie dollar pairs such as EURAUD and AUDUSD.
In the Euro area, the German ZEW Economic sentiment and Euro area sentiment along with current situation index will be released, which is likely to cause a lot of swing moves in EURUSD.
Similarly, there is a major release lined up in the UK, as consumer price index and producer price index data will be published, which has a potential to cause a break in GBPUSD and GBPJPY.
GBPJPY breached an important support recently signaling weakness in the British pound.
The Euro recently enjoyed good gains in the near term against the US dollar, but it also struggled to gain momentum towards the upside. There was a bearish trend line on the 4 hour chart of the EURUSD pair, which was cleared by the Euro buyers. However, after the break the pair was initially seen struggling around the 61.8% fib retracement level of the last leg from the 11530 high to 1.1268 low. On the positive side, it managed to close above the 100 simple moving average (SMA) – 4H., which might help the Euro in the near term. On the same side, we cannot deny that there are several resistances on the way up for the EURUSD pair.
Intraday Support Level – 1.1310
Intraday Resistance Level – 1.1360
Overall, as long as the pair is above the 100 4-hour MA it might continue trading higher.
A break below the same could take the pair towards the last swing low.
On the upside, the most important support can be seen around the 1.1360-80 resistance area where the Euro buyers might continue to struggle.
The British pound struggled recently against the Japanese yen, which was mainly due to the strength in the latter one. The GBPJPY pair even managed to clear an important bullish trend line on the 4 hour chart, which opened the doors for more downsides in the short term. However, we cannot deny the fact that the pair is well above the 100 and 200 simple moving averages (SMA) – 4H, which is an encouraging sign. If the pair moves lower from the current levels, then initial support is seen around the 38.2% fib retracement level of the last leg from the 175.46 low to 184.15 high.
Intraday Support Level – 181.60
Intraday Resistance Level – 183.00
Selling rallies around the 183.00 level line look like a good option.
A break above the same might call for more gains moving ahead.
On the upside, the last high of 184.15 holds the key 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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