GBP/USD stuck around 1.57 once again

Technical Analysis

EUR/USD to retest 1.14 after failure yesterday

“What we’re seeing is a mirror image of yesterday’s [EUR/USD] moves.”

- Commonwealth Foreign Exchange (based on Bloomberg)

• Pair’s Outlook
  

  Bears gained strong momentum on Tuesday, as EUR/USD attempted to cross several 2015 highs and close below the 1.14 mark. However, negative sentiment waned towards the end of trading and the cross came back above 1.1550. Still, the correction appears to be an event with a very high probability at the moment. If the pair fails at an immediate resistance represented by the May high at 1.1466, the next demand should be provided by Jun high at 1.1437 and monthly R2 at 1.1409. Despite that, daily technical indicators are bullish with respect to the common currency.

• Traders’ Sentiment

  The share of bulls decreased back from 50% to 49% in the past 24 hours. Alongside, pending orders in 100-pip range from the spot declined further from 44% to 42%.

GBP/USD stuck around 1.57 once again

“Sterling is relatively stable right now because it is somewhat less exposed to the risks in China and elsewhere.”

- FXTM (based on Reuters)

• Pair’s Outlook
  

  Despite reaching a fresh two-month high yesterday, the Cable returned under the 1.57 psychological level. The GBP/USD failed to hold the gains, due to the Bollinger band providing immediate resistance, which might be reached again today. From below the pair remains supported by a strong cluster, located around the trend-line, while technical studies are now showing bullish signs. The rally might well extend towards the Bollinger band, and possibly even further if the US fundamentals disappoint today.

• Traders’ Sentiment

  Positions are equally divided between the long and the short ones today, whereas the number of purchase orders remains unchanged at 61%.

USD/JPY takes another shot at retaking 120.00

“Dollar moves are being dictated by equities. But there is some caution towards aggressively buying currencies like the yen amid hopes that China will come up with additional stock-supporting and easing measures, though this is notyet consensus.”

- Societe Generale (based on CNBC)

• Pair’s Outlook
  

  The US Dollar’s volatility to the upside reached the weekly S1 at 120.41, but was instantly pushed back, ultimately resulting in a slight decline. Even though technical indicators are now giving bearish signals, the USD/JPY is still expected to recover today and negate yesterday’s losses. However, trade opened just under a strong resistance cluster, which could force the pair to sustain more losses if the fundamental data weighs on the Greenback. On the other hand, in case of the odds being in Buck’s favour, the 120.00 major level is likely to be retaken today.

• Traders’ Sentiment

  Less traders have a positive outlook towards the US currency, namely 60% of them. The share of buy orders slid from 44 to 39%.

XAU/USD enters bearish correction

“The key factor that underpins the bearish view for gold is very much the Fed rate hike expectation and that possibility is not off the table.”

- OCBC Bank (based on CNBC)

• Pair’s Outlook
  

  XAU/USD has been losing value for a third consecutive day on Wednesday. A decline started Monday, when the bullion received bearish impetus from the 100-day SMA at 1,160. At the moment the price is fluctuating around 1,136, namely five dollars above a major demand area composed of 2014 low, 55-day SMA, 20-day SMA ad weekly S1. We would allow a drop below this cluster of supports, which will confirm the bullion entering a correction phase. Nonetheless, daily indicators assume the metal will receive positive momentum from the mentioned bunch of technical levels.

• Traders’ Sentiment

  SWFX sentiment with respect to gold declined one percentage point from yesterday, as bulls and bears are currently holding 56% and 44% of all open positions, accordingly.