FOREX NEWS: BEARS ATTEMPTING TO DRAG BOTH PAIRS LOWEREUR/USD
Forex News: The bears stepped in with conviction yesterday and managed to take the pair into 1.3585 support. Major economic releases lacked but price had unidirectional movement for almost the entire day.Technical Outlook
It looks like the mixed reaction caused by last week’s ECB decision is starting to wear off and the market is finally choosing a direction. Of immediate importance is the support at 1.3585 which is still not broken decisively and until that happens, the probability of upside moves remains high. The support at 1.3560 is still active but its importance is diminished as recent price action has been influenced more by 1.3585 and 1.3500. The latter is also the next target once the current level is broken.Fundamental Outlook
The French Industrial Production numbers are released today at 6:45 am GMT and expected to increase from the previous -0.7% to 0.3%. The indicator tracks changes in the total value of output produced by the industrial sector during the analyzed month and higher numbers suggest economic expansion, thus strengthening the Euro. However, the impact is mild, especially if the real value is close to analysts’ forecast.GBP/USD
The bulls made another attempt yesterday to break 1.6820 but failed and as a result the rest of the day was controlled by the bears.Technical Outlook
Lately the pair is trading almost sideways, in close vicinity to 1.6820 resistance and the bulls lack the determination needed to break this level. Considering this, our bias is slightly negative, anticipating a move south that will touch 1.6750 but a lot depends on the economic data released today by the United Kingdom.Fundamental Outlook
At 8:30 am GMT the UK Manufacturing Production is released and anticipated to decrease slightly from last month’s 0.5% to 0.4%. Since manufacturing is an important part of Great Britain’s economic activity, better numbers can strengthen the Pound and the opposite is true for lower numbers. Later in the day, at 2:00 pm GMT, an estimate of the UK Gross Domestic Product is announced; the last estimate was 1.0% and values that surpass this figure will strengthen the Pound.