Forex News: Pairs Drifting without Clear Direction. ECB’s Draghi and Fed’s Yellen Set to Deliver Speeches
Forex News: Monday’s trading session had a bearish bias but overall action was slow and no major developments took place, mostly due to the lack of fundamental incentives.
Although price action was slow yesterday, the bears remained in control and took price close to the support located at 1.1575 but there’s an overall lack of conviction from both sides, so we may see a bounce higher when the pair will reach the support level mentioned earlier. The Relative Strength Index is approaching oversold, increasing the possibility of a move up. A clean break of 1.1575 would make 1.1480 the next target.
ECB President Mario Draghi will deliver opening remarks in Frankfurt at the ECB Forum on Banking Supervision, at 9:00 am GMT. Later in the day, at 7:30 pm GMT, Fed Chair Yellen will speak in Washington DC, accepting the Paul H. Douglas Award for Ethics in Government. We don’t expect these speeches to generate huge volatility because they are not directly related to monetary policy, but caution is advised nonetheless.
The pair had a bullish bias yesterday and moved again above 1.3100 but at the time of writing price is still hovering near the level so a clear break hasn’t occurred. The economic scene lacked important releases so the move was mostly technical.
If the bulls can maintain price above 1.3100, we will most likely see a move into the 50 period Exponential Moving Average but as long as that line remains resistance, our bias is bearish. If the pair drops below 1.3100, we expect a touch of 1.3030 and possibly 1.3000. The Pound is still very vulnerable to any Brexit talks so it can jump or drop at any time and this makes the entire picture unclear.
The Pound will not be affected today by major economic data, so the technical aspect will decide the pair’s direction.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.