USD/CAD has made an immense move to the downside on Tuesday falling by about 200 pips.
EUR/GBP ahead of the BoE meeting
SELL 0.9085; TP 0.9050; SL 0.9100
BUY 0.9130; TP 0.9175; SL 0.9115
EUR/GBP has so far been one of the most volatile currency pairs. It rose to 2-year highs and the ascent was fast. Daily oscillators show bearish divergence and indeed a correction took place yesterday: a bearish “engulfing” candlestick appeared on D1.
The upcoming meeting and press conference of the Bank of England (BoE) promise further moves of the exchange rate. There’s scope for more correction, so a decline below the Wednesday’s low at 0.9089 will open the way down at least to 0.9050 (July 17 high). Notice that the ultimate support is at 0.8950 (bottom of the bullish channel).
At the same time, the dovish Bank of England may weaken the GBP once again bring the pair back to the channel’s top. A rise above 0.9130 will make the pair rise to 0.9180.
Last week NZD/USD once again met resistance in the 0.6155 area. As you can see from the chart, this area stopped the pair twice before within the recent month.
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
The British pound entered summer higher against USD and EUR. What’s the reason?
The USD/JPY is at the lower border of the 2-week channel. Will it be broken?
Since last Wednesday, the gold price has been rising. Will it finally get to establish a new baseline level?