Forex News: The pair had a choppy session yesterday, moving above and below the minor support at 1.1110. The German Industrial Production release was shifted 24 hours later and no other major indicators were released.
The minor support at 1.1110 shows rejection and if it’s not broken soon, we are likely to see a move back into 1.1210 and a possible continuation of last week’s move. A break of this level is likely to find support in the zone around 1.1040, as well as near the 50 period Exponential Moving Average. The bias remains bullish as long as the pair is trading above 1.1040.
The German Industrial Production was rescheduled for today at 7:00 am GMT, but the forecast remains the same: a change of 0.2% compared to the previous -0.3%. Higher numbers show an active economy and usually strengthen the single currency but the impact is limited most of the times.
The Pound gave back some of last week’s gains and the pair even moved below the 50 period Exponential Moving Average, showing that the US Dollar still has underlying strength.
The pair found support at 1.4350 and at the moment it appears to be bouncing higher. If this bounce manages to break the 50 period Exponential Moving Average and 1.4475 to the upside, then we will probably see a continuation of the bullish move, otherwise, a break of 1.4350 would suggest that further downside movement will follow.
The Pound will not be affected by major economic indicator releases today and the main focus will be the technical aspect.