GBP/USD fell for second consecutive day

Technical Analysis

EUR/USD's Friday trading range surged above 100 pips

“The stakes are too high for the euro area and mostly for Greece, as the country’s economy and especially banking system may face an imminent collapse.”

- Athens University of Economic and Business (based on Bloomberg)

• Pair’s Outlook

  Last Friday, EUR/USD traded in a rather wide range of around 130 pips, the highest since February 6. The lowest mark was registered below the 1.13 major level. Despite that, the single currency managed to rebound toward 1.1380 and close just below this level, thus posting a small daily net increase of around 15 pips. At the moment the pair is well supported by the weekly PP at 1.1368, which will try to push the pair above 1.14 in the near term.

• Traders’ Sentiment

  Bullish opened positions at SWFX continue to hover just below 50%, with as many as 49% of them registered in the morning on Monday. On the other hand, SWFX pending orders to buy the Euro in 100-pip range from the spot advanced to 51%.

GBP/USD fell for second consecutive day

“If unemployment keeps falling, the laws of supply and demand have not been repealed, we will get inflation out of this.”

- High Frequency Economics (based on Reuters)

• Pair’s Outlook

  The Sterling extended its decline on Friday, losing almost half of Wednesday’s gain in two days. GBP/USD cross ended the trading day at 1.5391, after reaching a daily low around the 55-day SMA, which stopped the pair from falling further. Moreover, the pair is likely to rebound this week, as the previous support is bolstered by the weekly S1 now.

• Traders’ Sentiment

  Meanwhile, sentiment remains neutral, whereas the number of orders to acquire the Sterling edged up, accounting for 59% today.

USD/JPY edged up on Friday

“There’s no good reason to apply additional easing now. At the same time, the BOJ shouldn’t let concern about weakening the yen further stop it from expanding policy if needed.”

- Etsuro Honda, adviser to Japan Prime Minister (based on Bloomberg

• Pair’s Outlook

  USD/JPY currency pair added in value for the second day last Friday, following a rebound from the 55-day SMA. The Buck is likely to slump today, as the Existing Home Sales data is expected slightly worse over the month. However, the closest support, which is represented by the weekly PP at 118.87, might stop the pair from sliding too much.

• Traders’ Sentiment

  There are more bulls than bears among SWFX traders, accounting for 60%, while the number of buy orders is even higher, by accounting for 65% from the spot.

XAU/USD supported by demand area around 1,195

"With China temporarily out of the market and apparent progress on the Greek bailout, the path of least resistance appears lower for gold and also silver.”

- HSBC (based on CNBC)

• Pair’s Outlook

  At the end of last week, the bullion made a second unsuccessful attempt to cross the 1,200 round level. Currently, a strong support is provided by a number of important technical levels, including the monthly S1 and 23.6% Fibonacci retracement. In the short-term, this demand zone is going to provide Gold with some bullishness; therefore, a rebound toward the weekly pivot point at 1,211 is expected. Nevertheless, a move above this resistance is also unlikely to take place. Meanwhile, daily technical studies are still giving signals to sell the yellow metal.

• Traders’ Sentiment

  Sentiment toward the precious metal is remaining strongly optimistic among SWFX traders, while the total share of long opened positions lost one additional percentage point from Friday to reach 65% on Monday morning.