Pound Keeps Powering

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Forex Market News

An interesting week to say the least. Greenback has weakened somewhat and the pound keeps powering, even the little Aussie battler had a run overnight. 
 
Data flow has seen the Canadians, Chinese and Europeans come in on expectations and basically treading water. The UK on the other hand are still producing stronger results each time whilst the Yanks are mixed, some signs of slowing. Both the UK and US housing markets are boiling and need to let off steam. In normal conditions this would mean a rate hike, but the central banks can’t do that, yet, it would burst the asset bubble they have created with quantitative easing.
 
DATA HIGHLIGHTS TODAY – Aussie Trade Balance. UK Construction. AUNTY YELLEN SPEAKS. 
 
AUDUSD – Well, I got that wrong didn’t I. Ran up and tagged 95. Too late to jump on the band wagon now, no FOMO trading, so must wait for opportunities in lower time frames or trade against the trend when we get the signal to do so.
Resistance: 9460/9522
Support: 9200/9085/8900
 
EURUSD – Has come back to the ema and momentum is showing it is likely to turn here. A seller bar yesterday and looking for a LHLL in today’s bar for a possible trade tomorrow. Problem with that is that the ECB meet tomorrow.
Resistance: 13650/13890/14050
Support: 13565/13500/13488
 
GBPUSD – Just can’t keep a good thing down. Overbought territory and on another resistance level, albeit not as strong as the previous level so who knows if it will hold. Again no FOMO trading this now.
Resistance: 1.7035/1.7370
Support: 1.66/1.63
 
NZDUSD – Surprisingly it has gone nowhere whilst the above 3 majors ran. That says to me that these moves are not carry trading, that it is more fundamental. Whilst we do have divergence there is not enough sign of sellers to warrant a short trade yet.
Resistance: 8745/8842
Support: 8523/8434/8090
 
USDCAD – With the weaker greenback this week the Loonie is still on its run. Closed on its lows but RSI is no lower which is telling us there could be a retracement coming up. No sign of buyers yet though. 
Resistance: 10802/10950
Support: 10683/10655/10486
 
USDJPY – A ring low off support level. Is tempting but there is no divergence in RSI. Staying away from this for the moment. 
Resistance: 105.57/108.35/110.50
Support: 101.30/100.62/100/99.80
 
 
David Long/ Proprietary Trading Manager

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