Market Forecast 30/08/2017
EUR/GBP Forecast – Can Euro Hold This?
- The Euro surged higher and traded towards 0.9300 against the British Pound before finding sellers.
- The EUR/GBP pair is currently trading near a major bullish trend line with support at 0.9250 on the hourly chart.
- Today, the UK Consumer Credit for July 2017 was released by the Bank of England.
- The forecast was £1.500B, but it came in at £1.179B, less than the last revised £1.351B.
The Euro moved nicely and traded above the 0.9200 and 0.9260 resistance levels against the British Pound. The EUR/GBP pair recently traded as high as 0.9305 where it found sellers and started a correction.
The pair traded towards the 0.9250 support area, the 100 hourly simple moving average and a major bullish trend line with support at 0.9250 on the hourly chart.
It might correct higher, but there is a key resistance forming near the 38.2% Fib retracement level of the last decline from the 0.9305 high to 0.9242 low.
Further above, there is a bearish trend line at 0.9280, which is near the 61.8% Fib retracement level of the last decline from the 0.9305 high to 0.9242 low. Therefore, there are chances that the pair might range trade above 0.9240 for some time before making the next move either above 0.9280 or below 0.9240.
UK’s Consumer Credit
Today in the UK, the Consumer Credit for July 2017 was released by the Bank of England. The forecast was slated for the Credit to be £1.500B.
However, the actual result was below the forecast, as it came in at £1.179B, less than the last revised £1.351B. Similarly, the Net Lending to Individuals in July 2017 was disappointing, as there was a decline from the last reading of £5.6B to £4.8B (MoM).
On the other hand, the Mortgage Approvals in July 2017 were up from the last revised reading of 65.318K to 68.689K.
Overall, the outcome was mixed, which could help EUR/GBP in holding the 0.9240 support.
USD/CAD Forecast – US Rallying Vs Canadian Dollar
- The US Dollar made a good ground and traded above the 1.2500 handle against the Canadian Dollar.
- There is a bearish trend line with resistance at 1.2540 forming on the hourly chart of the USD/CAD pair.
- Today, the US ADP report is scheduled with forecast as 185K vs 178K previous.
The US Dollar after struggling a lot against the Canadian Dollar found support at 1.2440 against the Canadian Dollar. The USD/CAD pair formed a double bottom at 1.2440 and recovered sharply above the 1.2500 handle.
The pair even traded above the 1.2505 pivot and the 100 hourly simple moving average. However, a bearish trend line with resistance at 1.2540 on the hourly chart protected gains.
There was a correction, but the pair found support near 38.2% Fib retracement level of the last wave from the 1.2440 low to 1.2549 high, and the 100 hourly simple moving average.
It seems like the pair might gain pace and break the trend line resistance at 1.2540 in the near term.
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