Who will raise interest rates first? US or UK?
As the market appears to be certain about the FED NOT increasing the interest rate in July, traders will be analyzing tonights FOMC statement for any hints of an interest rate increase in September.
Yesterday, GBP was not affected during the release of GDP figures as it came out as expected but the Cable gained a little momentum later on, touching the high of 1.5625 which is the first resistance as of now and the second resistance can be seen at 1.5670.
In the US, stocks broke its 4 day losing streak on the back of positive earnings data. EURUSD tried to edge up touching 1.1130 yesterday but the rally was short-lived. Now we are looking at the support at 1.1020 with 1.0995 in extension.
The AUDUSD had a good run yesterday touching a high of 0.7349 but it came under pressure during the Asian session as global stress continues to put pressure on the Aussie which is heavily driven by the commodities.
The Greek stock market is one step closer to reopening after four weeks as the European Central bank accepted trading rules proposals.
Green lines are resistance, Red lines are support
USDCAD
Pivot: 1.2995
Likely scenario: Short positions below 1.2995 with targets @ 1.2905 & 1.288 in extension.
Alternative scenario: Above 1.2995 look for further upside with 1.305 & 1.3095 as targets.
Comment: A break below 1.2905 would trigger a drop towards 1.288.
USDCHF
Pivot: 0.9585
Likely scenario: Long positions above 0.9585 with targets @ 0.9635 & 0.9675 in extension.
Alternative scenario: Below 0.9585 look for further downside with 0.9545 & 0.9525 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
OIL
Pivot: 46.65
Likely scenario: Long positions above 46.65 with targets @ 48.45 & 49 in extension.
Alternative scenario: Below 46.65 look for further downside with 45.95 & 45.5 as targets.
Comment: A support base at 46.65 has formed and has allowed for a temporary stabilisation.
Pivot: 10950
Likely scenario: Long positions above 10950 with targets @ 11305 & 11435 in extension.
Alternative scenario: Below 10950 look for further downside with 10800 & 10660 as targets.
Comment: The RSI is mixed to bullish.
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