The pair currently lacks a trend on the H1 chart with range trading between 1.3300 and 1.3230, this range was further narrowed during the Asian session. This lack of trend makes it difficult to get any good signals from our technical indicators. The outlook remains as before, if we see a break above 1.3300 then this will open the way for 31st July high 1.3345, while a drop below 1.3230 makes leaves the next support at 1.3190 (low of 1st & 2nd of July).
USD Trade balance at 12:30pm GMT is the figure to monitor today with the deficit expected to decrease from 45B to 43.1B
Res: 1.3415, 1.3380 1.3345, 1.3300
Sup: 1.3230, 1.3190, 1.3165, 1.3145
Better than expected UK Services PMI caused the sterling to jump 40 pips breaking resistances and finally setting the daily high at 1.5375, which we will take as todayís resistance. Since then it retraced finding support at 1.5315. If it manages to hold above this level, then the outlook remains bullish with key target at 1.5430, the previous uptrend high reached on 25th of July
UK Manufacturing Production m/m is at 8:30am GMT with expectation of 0.9% much higher than the previous -0.8%
Res: 1.5530, 1.5475, 1.5430, 1.5375
Sup: 1.5315, 1.5250, 1.5180, 1.5100
Yen continues its fall breaking 98.27 support (previous low), the current downtrend on the H1 chart is from 99.93 (2nd Aug) to todayís low 97.82. Currently itís still in retracement mode rising more than 65 pips to currently trade near 98.50. The biggest barrier to the current downtrend would be 97.60, a support it failed to break many times during 31st Jul to 1st Aug sessions and that ended the previous downtrend.
Res: 100.40, 100.00, 99.15, 98.80
Sup: 97.82, 97.60, 97.20, 97.00
Australiaís currency rose against the U.S. dollar breaking 0.8950 resistance switching the outlook from bearish to bullish and making key psychological level 0.9000 the next target of the bulls. Since hitting a 3 year low at 0.8845, the Aussie has regained 145 pips.
Australia's central bank cut its main cash rate by a quarter point to a record low of 2.5 percent on Tuesday as it tries to prepare the economy for life after the mining boom. A move already factored in the market
Res: 0.9100, 0.9075, 0.9045, 0.9000
Sup: 0.8845, 0.8810, 0.8760, 0.8620
Gold falls back below 1300 support and looks heading towards 2nd of August low 1283. This came after it twice failed rise above 1320. Currently itís trading below both moving averages 20 & 55 with RSI also showing clear downward trend line on the H1 chart. Gold prices have been steadily dropping since the 23rd of July from 1348
The decline comes as investors wrestle with uncertainty about the Federal Reserveís timeline for reducing the flow of monetary stimulus.
Res: 1365, 1348, 1331, 1320
Sup: 1283, 1270, 1260, 1243