US Dollar Gains Momentum, Amid a Lacklustre Fundamental Scene
Forex News: Yesterday the bears took control of the pair and managed to take price below the support at 1.1400. However, price didn’t travel a long distance and the picture is still mixed.Technical Outlook
The pair is under bearish pressure and we consider the short term bias bearish, anticipating a move at least into the 50 period Exponential Moving Average. If this barrier is broken, then the next target will become 1.1340 but given the slow fundamental environment, it’s likely that this horizontal support will not be reached today. To the upside, resistance sits at 1.1450 but a move into this area is less likely for today.Fundamental Outlook
The only notable event of the day is the release of the U.S. JOLTS Job Openings, scheduled at 2:00 pm GMT and expected to show a reading of 5.89 million. The report shows how many new jobs are available during the reported month, excluding the farming sector; a higher number is beneficial for the US Dollar but the impact is usually low.
The US Dollar won the fight against the Pound yesterday and the pair dropped after a timid climb. The fundamental scene was lacklustre but Friday’s better than expected NFP probably extended its effects to yesterday’s trading session.Technical Outlook
After the dip below 1.2900 support, the pair climbed to re test this level and bounced lower, thus confirming it as resistance. Price is also trading below the 50 period Exponential Moving Average, so the short term bias is bearish, anticipating a touch of 1.2850 in the very near future. The Relative Strength Index is approaching oversold and the Pound still has underlying strength, so we may very well see a bounce higher once the mentioned target is reached.Fundamental Outlook
The Pound has a light economic calendar today, without any notable releases, so the deciding factor for direction will probably be the technical aspect.