Pairs Rolling Downhill, US Dollar Back in the Drivers Seat
Forex News: Price action was very slow until the release of the U.S. JOLTS Job Openings that posted a number of 6.16 Million, better than the anticipated 5.74 Million. This brought a wave of positive momentum to the US Dollar and the pair descended below support.Technical Outlook
The pair has breached the support at 1.1775 on the back of positive U.S. economic data and it appears like the US Dollar is gaining momentum. If the bears can keep price below the 50 period Exponential Moving Average and below 1.1775, we expect to see a move into 1.1713 and possibly 1.1700. Our bias is bearish but we acknowledge the fact that an uptrend is still in place and this means that a bounce at the next support is very possible.Fundamental Outlook
We have yet another slow economic day ahead, with the only notable indicator being the U.S. Preliminary Unit Labor Costs, scheduled for release at 12:30 pm GMT. The indicator shows the annualized change in the price paid by businesses for labor, excluding the farming sector. It has inflationary implications and usually a higher than expected value can strengthen the US Dollar but the impact is limited, especially if the actual number comes close or matches analysts’ forecast, which for today is a change of 1.1%.
Bearish momentum continued throughout yesterday’s trading session, mostly fuelled by better than expected U.S. economic data. The key psychological level at 1.3000 was broken decisively and this is likely to trigger additional downside movement.Technical Outlook
The pair is under heavy selling pressure and the break of the support at 1.3000 suggests that we will soon see a touch of 1.2930. However, it must be noted that the Relative Strength Index is entering oversold for the third time in a short period and this is an early warning that a bounce higher will soon follow. A good place for this bounce is 1.2930 but if price turns up before that, we expect 1.3000 to provide resistance.Fundamental Outlook
The United Kingdom didn’t schedule any economic releases for today, thus price direction will be decided by the technical aspect and the U.S. Labor Costs mentioned earlier.