The euro fell to the weakest level in seven months on speculations the European Central Bank could be more aggressive in stepping up additional measures to stimulate the economy. While the market expects the ECB to expand stimulus when it meets next week, the central bank may surprise the market with an even more aggressive move. Some analysts expect the ECB to cut the deposit rate by more than the market expects next Thursday. In any case, the EUR/USD is likely to remain under pressure. A next bearish target could be at 1.0555.
The British pound however, failed to show a sustained trend yesterday, trading sideways between 1.5136 and 1.5055. Next important resistances could be at 1.5155 and 1.5180, whereas sterling bears should keep an eye on a break of the 1.5050-level, targeting the 1.5030- and 1.50 level.
GBP/USD – 4 Hour Chart
U.S. financial markets are closed today for Thanksgiving, so the trading environment is expected to be very quiet. Nonetheless, we know from others years, that on Thanksgiving Thursday a clear trend has frequently been established. Moreover, the Friday after Thanksgiving tended to show even bigger moves, so it could be worthwhile for investors to remain engaged.
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