Have Euro And Cable Peaked?
Dear Traders,
The U.S. dollar has depreciated against most major currency peers after the Federal Reserve lowered expectations for the path of interest rate increases in 2016. The British pound surged to a fresh one-month high after the Bank of England left interest rates unchanged. The 1.45- level will now be crucial for the currency pair. Once GBP breaks above 1.4515 we see next resistances at 1.4545 and 1.4580. On the bottom side there could be a current support zone around the 1.43-level.
EUR/USD
The euro climbed above 1.13 and marked a new high at 1.1342. The big questions now is whether the euro will extend its gains even further but looking at the four-hour chart we see a major resistance at 1.1370/75 that could limit gains in the pair. However, in case of a break above 1.14 the next important resistance level is seen at 1.15. On the bottom side, we will turn our focus to a downside break of the 1.1275-level which could increase bearish momentum towards 1.1240 and 1.1160.
We had a successful week and therefore recommend traders not to reinvest their weekly profits and even consider a trading break today. So we will stay risk-averse and save our profits.
Michigan Confidence due for release at 14:00 GMT is the only important piece of U.S. data today.
We wish everyone a beautiful weekend!
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