Forex News: Balance Tilts Towards the Short Side as Pullbacks Continue
Forex News: Friday the Advance version of the US Gross Domestic Product showed a very disappointing figure of just 2.6%, compared to the expected 3.0% but the previous value was revised better. All this generated a mixed trading session, with choppy movement.
Bullish momentum shows signs of slowing down but the pair is facing support at 1.2400. This level will probably generate a bounce higher but we don’t expect to see a move above last week’s high located at 1.2540. On the other hand, a break of 1.2400 will send the pair into the 50 EMA but the oscillators lack momentum and the fundamental scene will be mostly quiet today, which are factors that may contribute to a low volatility session.
The day lacks any notable economic data releases for both currencies, so we expect slow or possibly ranging price action.
Price made another attempt to climb into 1.4300 resistance but returned lower later during Friday’s trading session. This may mark the beginning of a ranging period.
After the huge climb started at 1.3450, the pair is finally showing signs of slowing down as seen by Friday’s failed attempt to move into 1.4300 and the consequent drop below 1.4200. Today we will most likely see a drop into 1.4100 and possibly into the 50 EMA but the overall outlook is clearly bullish so the current move should be treated as a retracement, not a reversal.
Similar to the other two currencies, the Pound will not be affected by economic data today, so the technical aspect will decide the pair’s behavior.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 8-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.