The Republican-led U.S. Senate approved sweeping tax legislation, sending the tax cut package back to the House of Representatives for a final vote. Fed raised Interest Rates but expressed a dovish view about next moves for accompanying a not-so-convincing U.S. economic expansion.
Eurozone CPI inflation data (Preliminary release) ticked down while U.S. GDP preliminary release ticked upper than expected. Last U.S. Nonfarm payrolls and ADP Nonfarm Employment data also surpassed consensus once again.
German Manufacturing data and Ifo data came again higher than expected.
The European Central Bank revised up its forecast for growth and inflation, but added that underlying inflation remains subdued.
We expect another correction down from 1.185 area. Possible target: 1.176.
Our special Fibo Retracement is confirming the following S/R levels against the Monthly and Weekly Trendlines obtained by connecting the relevant highs and lows back to 2012:
Weekly Trend: Neutral
1st Resistance: 1.1856
2nd Resistance: 1.1990
1st Support: 1.1756
2nd Support: 1.1655
Ears out to today BoE Governor Carney speech.
The Republican-led U.S. Senate approved sweeping tax legislation, sending the tax cut package back to the House of Representatives for a final vote. Fed raised Interest Rates but expressed a dovish view about next moves for accompanying a not-so-convincing U.S. economic expansion.
Fed raised Interest Rates but expressed a dovish view about next moves for accompanying a not-so-convincing U.S. economic expansion.
UK Retail Sales way better than expected and UK CPI inflation data and UK Manufacturing Production came higher than consensus too.
Sterling rose amid hopes that a deal on Brexit would be reached. Nonetheless, we think the sentiment will turn negative very soon, as this deal will be delayed and Pound will discount this heavily overbought speculative situation.
UK Retail Sales came better than expected and last UK job market data also better than expected.
As written previously, Pound is inside an overbought area. 1.336 – 1.346 area represents a strong Resistance area. Now, either a breakout of 1.346 with target in 1.36 area, or (which we see more likely) a test in 1.329 Demand area.
Our special Fibo Retracement is confirming the following S/R levels against the Monthly and Weekly Trendlines obtained by connecting the relevant highs and lows back to 2001:
Weekly Trend: Neutral
1st Resistance: 1.3460
2nd Resistance: 1.3610
1st Support: 1.3362
2nd Support: 1.3285
The Republican-led U.S. Senate approved sweeping tax legislation, sending the tax cut package back to the House of Representatives for a final vote. Fed raised Interest Rates but expressed a dovish view about next moves for accompanying a not-so-convincing U.S. economic expansion.
Australia's central bank has become more confident about the economic outlook in recent months, but weakness in consumer spending remains a "significant risk" amid slow income growth and high debt levels.
Minutes of the Reserve Bank of Australia's (RBA) meeting showed policy makers again balanced subdued inflation against record high household debt while leaving interest rates at 1.50 percent for almost 1-1/2 years.
Australia GDP worse than expected is deteriorating the hopes of a future hawkish RBA behaviour, though Retail Sales were higher than expected.
We expect this bullish correction to come to a stop around area 0.77 and, in a new downtrend pressure impulse, a consolidation phase can be starting around 0.757 Demand area.
Our special Fibo Retracements are confirming the following S/R levels against the Monthly and Weekly Trendlines obtained by connecting the relevant highs and lows back to 2012:
Weekly Trend: Overbought
1st Resistance: 0.7680
2nd Resistance: 0.7735
1st Support: 0.7570
2nd Support: 0.7480