Latest news 29-01-2016by FXFINPRO Capital
28.01.2016 - We expect a strong price movement of the British pound
The price of the British pound, after a long and steady decline in the descending channel, halted the decline and is currently consolidating within the triangle. The breaking and fixing above this resistance will be a signal to buy with the targets at 1.4500 and 1.4700. The signal for sale in case of a fall, will be fixation below 1.4220, which is a local minimum. We maintain a medium-term negative outlook, but are waiting for the signal to open new positions.
Forex and CFD
28.01.2016 - Technical view
Currencies trading and euro. The price of EUR/USD stopped growing after reaching the level of 1.0900, and an unsuccessful attempt to overcome it. At the moment the price is consolidating below this level and in case of overcoming it, will continue to rise until 1,0985-1,1000. On the other hand, the decline is likely to resume and quotes again can return to the level of 1.0800 and then continue the decline to 1.0700 and 1.0550. Our medium-term outlook remains negative and we are waiting for the increased volatility in the coming days.
Nearest resistance levels: 1.0900, 1,0985, 1.1050, 1.1080, 1.1200, 1.1350, 1.1450
Nearest support levels: 1.0800, 1.0700, 1.0550, 1.0500, 1.0450, 1.0200
Currencies trading and British pound....
28.01.2016 - The rhetoric of the Fed became softer
Currency trading and the euro. The price of euro failed to extend gains against the US dollar despite the publication of the Fed's statement on monetary policy, which was more dovish than the previous rhetoric of the American regulator. As a result, the likelihood of raising interest rates in March, according to information of the Chicago Mercantile Exchange dropped from 34% to 29%. Such scenario was expected, and investors decided to fix positions. Support for the US dollar was also the strong data on new home sales in the US market. Thus, the figure rose to 544 thousand vs. expected 501 thousand. This indicator rose by 9.9% compared to the same period last year. Today, the dynamics of trading will affect data on the number of initial applications for unemployment benefits, and orders for durable goods in the US (13:30 GMT). We maintain a medium-term negative outlook for the euro.
28.01.2016 - We expect a further fall in prices of NZD/USD
The Reserve Bank of New Zealand yesterday decided not to change the settings of monetary policy in the country. As a result, the interest rate remains at 2.50%. In addition, in the statement of the bank were noted the risks associated with the housing market in a country where prices continue to rise, and also were voiced concerns about the Chinese economy, which is a key partner of the country. Hinting at a possible reduction in interest rates this year, in the case of the absence of signs of rising inflation, has led to a reduction in the New Zealand dollar, which according to our forecasts will continue to target levels at 0.6250 and 0.6000. Our medium-term outlook is negative and we recommend holding short positions.