EUR/USD still within confines of consolidation triangle

Russell Shor, CFTe, MFTA FXCM

The EURUSD is consolidating sideways in a symmetrical triangle (green converging lines). The impulse move prior to this congestion phase was a mark-down phase (down sloping blue channel). We are now assessing if the consolidation phase is of the accumulation or distribution variety. We do note that the RSI(9) has moved above 50 which is indicative of an underlying bullish momentum, perhaps hinting towards the accumulation of EURUSD. If this is the case, the pair should move into a mark-up phase when the consolidation period completes.

The FOMC will release its statement today at 7:00pm GMT and the press conference will be held at 7:30pm GMT. There is a strong possibility that there will be dovish undertones. If there are then this may give support to the accumulation side and help contribute to the transition into a mark-up phase for EURUSD.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.