On Friday, the EUR/USD dropped to a new 12 year low and reached its support level at 1.0460. Downwards movement was seen despite the fact that U.S economic data showed disappointing figures. Speculation that the Fed will be more hawkish at the FOMC Meeting is pushing the pair lower.
This morning, we saw a slight price correction and the pair returned above 1.0500. However, we don’t expect this bullish trend to last. Traders should watch U.S data being released later in the session including Industrial Production which is expected to show a slightly better reading of 0.3%. At 6.45PM (GMT), the President of the ECB, Mario Draghi, will be speaking in Frankfurt. The trend is sideways. Support is found at 1.0460 and resistance at 1.0720.
The GBP/USD almost reached a new 5- year low of 1.4700. The British Pound has been trading with high volatility and lost 4.7% over the past month. Political uncertainty is hurting the sterling and this sentiment could continue ahead of elections which will take place in May. In addition, the bearish movement is supported by the stronger Dollar which is benefitting from expectations that the Fed will hike interest rates this summer.
Today, pay attention to the U.S. Industrial Production release which is coming out at 1.15PM (GMT). The trend is sideways. Support is found at 1.4700 and resistance at 1.5020.
March 16, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
On Friday, the EUR/USD dropped to a new 12 year low and reached its support level at 1.0460. Downwards movement was seen despite the fact that U.S economic data showed disappointing figures. Speculation that the Fed will be more hawkish at the FOMC Meeting is pushing the pair lower.
This morning, we saw a slight price correction and the pair returned above 1.0500. However, we don’t expect this bullish trend to last. Traders should watch U.S data being released later in the session including Industrial Production which is expected to show a slightly better reading of 0.3%. At 6.45PM (GMT), the President of the ECB, Mario Draghi, will be speaking in Frankfurt. The trend is sideways. Support is found at 1.0460 and resistance at 1.0720.
GBP/USD
The GBP/USD almost reached a new 5- year low of 1.4700. The British Pound has been trading with high volatility and lost 4.7% over the past month. Political uncertainty is hurting the sterling and this sentiment could continue ahead of elections which will take place in May. In addition, the bearish movement is supported by the stronger Dollar which is benefitting from expectations that the Fed will hike interest rates this summer.
Today, pay attention to the U.S. Industrial Production release which is coming out at 1.15PM (GMT). The trend is sideways. Support is found at 1.4700 and resistance at 1.5020.
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