Fundamental Analysis of EUR/GBP for February 15, 2019
2019-02-15
EUR/GBP is currently trading at the edge of 0.8800-50 resistance area from where the price is expected to sink lower following the overall downtrend. The eurozone has been posting evidence of an economic slowdown. As a result, EUR is set to lose ground versus GBP in the coming days despite the BREXIT uncertainty.
The question is still open whether the UK will leave the EU with or without a divorce deal. Speculators are currently debating on the benefits and pitfalls of each decision. As the UK is facing political turmoil, the BREXIT situation is getting more mysterious. First Prime Minister Theresa May should get a BREXIT deal approved by the British parliament. Then she will decide whether to delay BREXIT or thrust the economy with NO DEAL. No Deal BREXIT is sure to pose a global threat where GBP will be the main victim. The European Union is not in the mood of delaying BREXIT which might lead to NO DEAL BREXIT. This worst-case scenario will certainly send shock waves across global financial markets.
The weak GDP report from the UK was the biggest nuisance for GBP buyers this week which is expected to be overcome in the coming days as the eurozone weakness averts the market sentiment away from EUR. Moreover, UK CPI and Manufacturing Production reports also revealed downbeat data.
Meanwhile, GBP has been the weaker currency in the pair. On the other hand, downbeat economic reports from the eurozone also bearish for EUR. If the UK presents better economic reports in the coming days, this may encourage GBP to gain momentum. As a result, the pair may carry on with its decline in the coming days.
Now let us look at the technical view. The price is currently trading at the edge of 0.8800-50 from where the recent bullish corrective weakness is expected to lead the price lower towards 0.8650 support area in the coming days. As the price remains below 0.90 area with a daily close, the bearish bias is expected to continue further.
SUPPORT: 0.8500, 0.8650
RESISTANCE: 0.8850, 0.8950, 0.90
BIAS: BEARISH
MOMENTUM: VOLATILE
Technical analysis of USD/CHF for February 15, 2019
2019-02-15
Overview:
The USD/CHF pair continues to move upwards from the level of 1.0003. Today, the first support level is currently seen at 1.0003, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 0.9982, which coincides with the 50% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the USD/CHF pair to trade between 1.0003 and 1.0067. So, the support stands at 1.0003, while daily resistance is found at 1.0067. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.0003. In other words, buy orders are recommended above the spot of 1.0003 with the first target at the level of 1.0067; and continue towards 1.0103 and 1.0140. However, if the USD/CHF pair fails to break through the resistance level of 1.0030 today, the market will decline further to 0.9908.
Technical analysis of NZD/USD for February 15, 2019
2019-02-15
The NZD/USD pair breached resistance which had turned into strong support at the level of 0.6705 this week. The level of 0.6705 coincides with a golden ratio, which is expected to act as major support today. The RSI is considered to be overbought, because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). Besides, note that the pivot point is seen at the point of 0.6882. This suggests that the pair will probably go up in the coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended to be placed above 0.6800 with the first target at the level of 0.6882. From this point, the pair is likely to begin an ascending movement to the point of 0.6882 and further to the level of 0.6984. The level of 0.6984 will act as strong resistance. However, if there is a breakout at the support level of 0.6705, this scenario may become invalidated.
