The offered tone around the sterling is now picking up further pace, now sending GBP/USD down to the 1.4130 area, or session lows.

GBP/USD upside capped near 1.4250

The pair has come under renewed selling mood during the European morning at the beginning of the week, so far snapping a 5-day positive streak. The upside, however, seems to have run out steam in the mid-1.4200s for the time being, prompting the ongoing leg lower.

On the US data front, the Fed’s Labor Market Conditions Index is due later, although speeches by Brainard and Fischer are poised to gather more attention instead.

GBP/USD levels to consider

As of writing the pair is retreating 0.48% at 1.4154 and a breach of 1.4100 (psychological level) would open the door to 1.4032 (23.6% Fibo of 1.4670-1.3833) and finally 1.3833 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4249 (high Mar.4) followed by 1.4398 (55-day sma) and then 1.4410 (high Feb.19).

The offered tone around the sterling is now picking up further pace, now sending GBP/USD down to the 1.4130 area, or session lows…

(Market News Provided by FXstreet)

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The EUR/JPY pair extended losses in Europe to trade below 124.47 (23.6% of 132.29-122.06) after BOJ’s Kuroda squashed hopes of more monetary easing in the near-term.

Offered below hourly 50-MA

The selling pressure gathered pace after the cross dipped below the hourly 50-MA located at 124.73. The greenback is on a recovery mode against most majors, due to which the EUR/USD pair fell below its 50-DMA.

However, Kuroda saved the day for Yen by stating the bank is unlikely to do more right now. Consequently, the cross fell to a low of 124.28 levels and appears on track to test the hourly 100-MA support at 124.18.

EUR/JPY Technical Levels

The immediate support is seen at 124.18 (hourly 100-MA), under which the pair could test hourly 200-MA level of 123.92. A break lower would expose 123.09 (March 2 low). On the other hand, a break above 124.47 (23.6% of 132.29-122.06) would shift risk in favor of a recovery to 125.24 (daily high). Above the same the cross could rise to 125.59 (Friday’s high).

The EUR/JPY pair extended losses in Europe to trade below 124.47 (23.6% of 132.29-122.06) after BOJ’s Kuroda squashed hopes of more monetary easing in the near-term.

(Market News Provided by FXstreet)

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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross remains poised for a re-test of 0.7565.

Key Quotes

EUR/GBP is seeing a very small bounce from the 23.6% retracement at 0.7702, having recently severed its uptrend and reversed just ahead of the 200 week ma, we suspect that near term rebounds will remain shallow”.

“The risk is this week that we will see further weakness to .7565, 38.2% retracement and potentially 0.7454, the 50% retracement”.

“The market increasingly looks to have topped here and we will for now neutralise our forecast”.

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross remains poised for a re-test of 0.7565…

(Market News Provided by FXstreet)

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The now better tone in the greenback is lifting USD/CHF to fresh multi-day highs in the 1.0000/10 band.

USD/CHF stronger post-Payrolls

The greenback is resuming its upside momentum following the auspicious results from the US Non-farm Payrolls during February (242K), taking the pair to challenge 4-day peaks above the parity level.

Ahead in the session, speeches by Brainard and Fischer will keep the attention on the USD-side of the equation, while Switzerland’s unemployment rate is due tomorrow.

USD/CHF key levels

The pair is now up 0.60% at 0.9994 facing the next up barrier at 1.0031 (61.8% Fibo of 1.0262-0.9658) ahead of 1.0120 (76.4% Fibo of 1.0262-0.9658) and finally 1.0262 (2016 high Jan.29). On the other hand, a break below 0.9908 (20-day sma) would open the door to 0.9801 (23.6% Fibo of 1.0262-0.9658) and then 0.9781 (200-day sma).

The now better tone in the greenback is lifting USD/CHF to fresh multi-day highs in the 1.0000/10 band…

(Market News Provided by FXstreet)

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