On Tuesday, the EUR/USD traded sideways as expected. During the European session the pair traded with positive momentum and tested its resistance at 1.1000. However, once U.S. CPI data was released and showed that inflation has been picking up, the pair dropped to 1.0900. During the Asian session, the pair started to range in a narrow channel between 1.0900 and 1.0940. Traders still remain cautious following last week’s dovish statements so traders should prepare for the pair to move back down once these concerns disappear.
Today at 9.00AM (GMT) the EU German Ifo Business Climate will be released. Yesterday, European data slightly improved and therefore, this reading is expected to show a stronger figure than last month. At 12.30PM (GMT) U.S. Core Durable Goods Orders will come out. The prediction is to see a 0.3% increase. This index missed expectations for the past 7 months and so we could see some bearish speculation on the Dollar before the actual release. The trend is sideways. Support is found at 1.0760 and resistance at 1.1030.
Yesterday, the GBP/USD fell below 1.4900 after U.K inflation data remained at the same level of 0.0% instead of increasing by the expected 0.1%. The last time British inflation was this low was in 1989. Contrastingly, the U.S CPI came out on target and showed growth of 0.2%.
Today, the pair might continue to trade with bearish sentiment as U.S Core Durable Goods Orders data will come out. If the data is positive, we could see the Dollar sharply appreciate as it could increase the likelihood of a June interest rate hike. In addition the political situation in the U.K is unclear ahead of the upcoming elections; the current Prime Minister, David Cameron, ruled out being a prime minister for a third time. The trend is slightly bearish. Support is found at 1.4775 and resistance at 1.5010.
March 25, 2015 – Forex News
Hot asset for today: USD
EUR/USD
On Tuesday, the EUR/USD traded sideways as expected. During the European session the pair traded with positive momentum and tested its resistance at 1.1000. However, once U.S. CPI data was released and showed that inflation has been picking up, the pair dropped to 1.0900. During the Asian session, the pair started to range in a narrow channel between 1.0900 and 1.0940. Traders still remain cautious following last week’s dovish statements so traders should prepare for the pair to move back down once these concerns disappear.
Today at 9.00AM (GMT) the EU German Ifo Business Climate will be released. Yesterday, European data slightly improved and therefore, this reading is expected to show a stronger figure than last month. At 12.30PM (GMT) U.S. Core Durable Goods Orders will come out. The prediction is to see a 0.3% increase. This index missed expectations for the past 7 months and so we could see some bearish speculation on the Dollar before the actual release. The trend is sideways. Support is found at 1.0760 and resistance at 1.1030.
GBP/USD
Yesterday, the GBP/USD fell below 1.4900 after U.K inflation data remained at the same level of 0.0% instead of increasing by the expected 0.1%. The last time British inflation was this low was in 1989. Contrastingly, the U.S CPI came out on target and showed growth of 0.2%.
Today, the pair might continue to trade with bearish sentiment as U.S Core Durable Goods Orders data will come out. If the data is positive, we could see the Dollar sharply appreciate as it could increase the likelihood of a June interest rate hike. In addition the political situation in the U.K is unclear ahead of the upcoming elections; the current Prime Minister, David Cameron, ruled out being a prime minister for a third time. The trend is slightly bearish. Support is found at 1.4775 and resistance at 1.5010.
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