EUR/USD gets support from lower Bollinger band

Technical Analysis

EUR/USD gets support from lower Bollinger band

“Growth is slowing in the first quarter after a strong second half of last year. All the gas savings are ending up at the bank rather than being spent.”

- Standard Chartered Bank in New York (based on Reuters)

• Pair’s Outlook

  EUR/USD stays broadly stable for a third day in a row. On Monday, it registered completely no daily change in any direction and stayed just below the Bollinger band around 1.1180. On Tuesday morning, however, the pair is gaining some value, being supported by the mentioned technical level. If the pair manages to consolidate above 1.12 round level, the short-term expectation will become bullish, with a target at 1.1256 (weekly PP) during next 48 hours.

• Traders’ Sentiment

  Bullish opened positions at SWFX are accounting for 49% in the morning on Tuesday, down from neutral distribution seen on Monday. SWFX pending orders to buy the Euro against the US Dollar in 100-pip range from the spot are in the minority with just 37%.

GBP/USD sliding down

“UK mid-sized businesses are truly the backbone of the British economy, supporting millions of jobs and making a vital contribution to economic performance.”

- HSBC (based on The Guardian)

• Pair’s Outlook

  Indeed, the GBP/USD pair declined over Monday, but not as much as expected. Still, the Sterling found support at 1.5347, where the 20-day SMA stands, rather than closing the day near the cluster around 1.5328. Nevertheless, the Pound settled at a two-year high and further gains are expected on Tuesday. Even though short-term indicators are bearish, any losses should not last, as the daily indicators are pointing north. However, it is doubtful the pair will manage to cross the weekly PP at 1.5438.

• Traders’ Sentiment

  Bulls have grown stronger than bears, as 68% of all positions are long, whereas the portion of commands to acquire the British currency increased from 44% to 55%.

USD/JPY extended gains

“In addition to some option-related selling above 120 yen, Honda's comments helped send the dollar lower. The pullback in Japanese shares is another factor weighing on the dollar today.”

- Global-info Co (based on Reuters)

• Pair’s Outlook

  The Greenback appreciated versus the Japanese Yen yesterday. The pair surged for a third day after a number of US data releases on Monday. Moreover, the pair outperformed as it breached weekly R1 level and settled at 120.11. However, the rally is about to stop, being that the pair is expected to bounce back today, according to technical studies. Indicators are giving bearish signs in the shorter time frames. Hence, the Buck is likely to end the trading day between the weekly R1 and PP levels around 119.74.

• Traders’ Sentiment

  Market sentiment among SWFX traders improved over the day, as 59% of all positions are now long. Meanwhile, the number of buy orders also edged up by two percentage points to 63%.

XAU/USD is pushed down by 100-day SMA

“Despite the fact that most people are swaying back and forth on the timing of the U.S. rate hike, there is still consensus that it will happen this year.”

- Wing Fung Financial Group (based on CNBC)

• Pair’s Outlook

  On Monday, two simple moving averages (20 and 100-day) came together in order to push the precious metal considerably to the downside. They succeeded in achieving this goal as Gold dropped even below the weekly pivot point to close the trading session at 1,206. Moreover, a decline continued on Tuesday and the metal fell down to weekly S1 at 1,195. This support, however, is pushing the bullion back above the round mark of 1,200. Daily technical indicators remain bearish at the moment; therefore, a present rebound is likely to be short-lived.

• Traders’ Sentiment

  Sentiment toward the precious metal is remaining optimistic among SWFX traders, even though a total share of bullish positions plummeted by 16% during past 24 hours, down from 68% to just 52% on Tuesday morning.