Cable drops on weak data, strong rise of EUR/GBP cross

Slobodan Drvenica Windsor Brokers

Cable lost traction on Tuesday and fell around 100 pips, deflated by downbeat CBI survey of the retail sector and strong rise of EURGBP cross.

Fresh weakness moves focus to the lower boundary of the range in which the price action moves for the sixth straight day.

Long upper shadows of daily candles points to strong headwinds bulls face at 1.42 zone, following few spikes close to 2021 high (1.4238), but repeated failures to register a daily close above 1.4200 handle, generate initial signal of stall and possible pullback.

But these signals require verification on break and close below two initial pivotal supports at 1.4124 and 1.4100 (10DMA / Fibo 23.6% of 1.3669/1.4233 rally) that would expose next key support levels at 1.4038/18/00 (20DMA / Fibo 38.2% / psychological), break of which would confirm reversal.

The other two scenarios are: extended consolidation above 1.4100 ahead of continuation of larger uptrend and healthy correction which will be contained above 1.40 zone before bulls regain traction.

Daily techs are positive overall and support both scenarios, but strong loss of bullish momentum and stochastic reversing from overbought territory on weekly chart warn of deeper correction.

Res: 1.4171; 1.4200; 1.4238; 1.4265

Sup: 1.4124; 1.4100; 1.4036; 1.4020

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.