Forex News: The German Retail Sales showed a lower value than analysts had anticipated, but it was still better than the previous and this contributed somewhat to yesterday’s climb above medium term resistance.
The pair shows good bullish momentum and the oscillators are moving strongly to the upside without being overbought. This suggests that the movement north is likely to continue but the level at 1.0870 may prove a strong resistance. If this is the case, we it probably see a move below the 50 period Exponential Moving Average and into 1.0800.
Price direction today will be heavily influenced by the release of the Non-Farm Payrolls, scheduled at 1:30 pm GMT. This is widely considered the most important U.S. employment indicator and almost always its release creates strong movement, with higher numbers being beneficial for the US Dollar. The expected figure is 203K, lower than the previous 211K.
The pair dropped yesterday below the support at 1.4565 which is an important level, better seen on a Weekly chart. The greenback continues to dominate the Pound and a retracement is still expected.
Price is slowly grinding lower without any sort of retracement and has even managed to breach 1.4565 key support. Both oscillators are crawling on their respective oversold levels and the pair seems in bitter need of a move higher which may occur today. The first potential resistance is located at 1.4630, followed by 1.4700 but the real direction of the day will be probably decided by the U.S. jobs data.
The British Trade Balance is released at 9:30 am GMT and expected to show a number of -10.5B (previous -11.8B). Usually the indicator doesn’t create huge movements but nonetheless, a higher number can strengthen the Pound.
We hope you had a profitable trading week and we wish you a relaxing weekend.