US dollar reacted to the downside recently against most major currencies, as the dollar sellers managed to gain strength which resulted in a move lower in the near term.
Australian Westpac Consumer Confidence, which gauges the level of sentiment that individuals have in economic activity reflecting respondents' evaluations of their family finances over the past and coming year released by the Faculty of Economics and Commerce Melbourne Institute came in at 96.2.
New Zealand Food Price Index (FPI) evaluating price changes of food bought by households released by the Statistics New Zealand posted a reading of 0.1% in March 2015, compared to the preceding month.
Chinese Gross Domestic Product (GDP) i.e. the gross value of all goods and services produced by China released by the National Bureau of Statistics of China posted an increase of 7% in the first quarter of 2015.
Chinese Industrial output, which is the volume of production of Chinese Industries such as factories and manufacturing facilities released by the National Bureau of Statistics of China gained by 5.6% in March 2015, compared to the same month a year ago and the market was expecting it to be 6.9%.
Chinese New loans will also be released for March 2015 with the forecast of 1,031B.
The British pound fell sharply against the US dollar and tested the 1.4560 support area where buyers defended the downside. The reaction around the mentioned level was sharp, as GBPUSD climbed back higher. However, the upside was stalled around an important broken trend line on the 4-hour chart. Moreover, the 50% fib retracement level of the last leg from the 1.4970 high to 1.4564 low is also around the same area. This is not all, as the 100 simple moving average is also positioned around the 50% fib level. So, one might say that there is a major barrier formed around the 1.4800 area for the GBPUSD pair where buyers might struggle.
Intraday Support Level – 1.4700
Intraday Resistance Level – 1.4820
Overall, as long as the pair is below the 100 SMA it might continue moving lower.
A break above the same could ignite more gains moving ahead.
If the GBPUSD pair fails to break above the 100 SMA, then a downside reaction is possible which could take it back towards the 1.4650 level.
The US dollar was following a nice bullish channel on the 4-hour against the Swiss franc. However, the USDCHF pair found sellers around the 0.9860 level and as a result it moved back lower. The pair not only broke the channel support but also managed to pierce the 200 simple moving average on the 4-hour chart. The next level of interest is around the 100 SMA.
Intraday Support Level – 0.9660
Intraday Resistance Level – 0.9780
Selling rallies around the broken trend line looks like a good option.
A break above the same might call for more gains moving ahead.
If the USDCHF pair moves higher from the current levels then a retest of the broken trend line is possible where sellers might appear again.
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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