EUR/USD breaks lower
The Euro struggled after retail sales across the bloc remained flat in April. The pair has given up most of the gains from its mid-Mach rally and is heading towards the daily support of 1.0540. The latest bounce has met stiff selling pressure at 1.0780 and the subsequent U-turn sent the single currency back to the base of the rebound at 1.0670 with a tentative break suggesting further weakness. Its breach would invalidate the brief bullish momentum and cause a sell-off below 1.0635. 1.0730 has become a fresh resistance.
AUD/USD bounces back
The Australian dollar jumped after the RBA surprised the market with another tightening move. The price continues to capitalise on its bounce off the base of last November’s rally at 0.6460. A surge above the key support-turned-resistance of 0.6640 has forced more sellers to cover their bets and eased the bearish pressure, clearing the path for a potential extension towards 0.6750. The RSI’s double top in the overbought zone may temporarily limit the bullish fever and 0.6610 is the closest support in case of a retracement.
UK 100 tests resistance
The FTSE 100 bounces back supported by a rally in energy stocks. A V-shaped rebound has brought the index to its first key resistance at 7650 which coincides with the 20-day SMA. A bullish breakout would flush selling interests out and pave the way for an extended recovery to the previous consolidation zone around 7800 where a liquidation kicked off later last month. A close above this major ceiling might trigger a bullish continuation above 8000 in the medium-term. 7520 is an important level to maintain the current momentum.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.