FOREX NEWS: IRREGULAR PRICE ACTION AS ECONOMIC RELEASES LACK ALMOST COMPLETELY
EUR/USDForex News: Friday was a day characterized by another major whipsaw experienced at the time of the Non Farm Payrolls release. The number of new jobs was close to what analysts had forecast but the market had a mixed reaction.
Technical OutlookThe bullish impulse was reversed in close vicinity of the resistance located at 1.3680 and a big four hour pin bar was printed. This type of candle indicates rejection and a potential move lower which will encounter the first support at 1.3585. A move above 1.3680 will nullify the effect of the pin bar and will make 1.3730 the first target. Considering the latest movement, our current bias is neutral until further developments.
Fundamental OutlookToday French and German Banks are closed in observance of Whit Monday, a fact that will potentially generate irregular volatility and sluggish price action. On top of that, no US economic data is released so the chances of a slow Monday are increased.
GBP/USDThe Non Farm Payrolls release had a similar impact on the Cable and we saw a move up, countered immediately by the bears; at the moment price is sitting below resistance.
Technical OutlookFor the time being the level of 1.6820 is offering good resistance and rejects all bullish moves. The Relative Strength Index is close to the 70 level and further bullish movement will probably take it into overbought, thus increasing the chances of a move south. If price doesn�t manage to break this level today, we are likely to see a shift of power towards the bears, with 1.6750 support being the next destination.
Fundamental OutlookThe United Kingdom didn�t schedule any major news releases for today so price action will be mostly driven by the technical aspect of the market.
This post has been edited by GDMFX: Jun 9 2014, 01:45 PM