By Fast Brokers – The Cable is battling to stay above previous February lows and the psychological 1.55 level as the Dollar strengthens across the board during the U.S. trading session. Weekly U.S. Unemployment Claims printed stronger than analyst expectations, leading investors towards the Dollar amidst economic uncertainty in Europe. Speaking of which, although the EU has come to a decision to help Greece the Euro is weakening, telling us assistance from the EU may have already been priced in earlier this week. Meanwhile, investors also appear to be brushing aside stronger than expected Australian employment data and weaker than expected CPI data from China, both positive developments for the risk trade. Therefore, investor uncertainty concerning the ramifications of European debt problems seems to be bearing on the market. Although the UK is quiet on the economic data front today, Manufacturing Production printed much stronger than analyst estimates yesterday. However, investors should keep in mind that services drive the UK economy, and Services PMI data disappointed last week. Hence, the UK still faces economic headwinds despite noticeable signs of improvement. Also weighing on the Pound is weaker than expected projections for UK GDP and CPI growth released yesterday in the BoE’s inflation report. The BoE’s modest economic outlook for the UK is a bit discouraging and may also be yielding weakness in the Pound. Meanwhile, attention will remain focused on the EU and its plan to guide Greece out of its debt problems in addition to Germany’s Prelim GDP data due tomorrow. Additionally, the U.S. will release Retail Sales and Prelim UoM Consumer Sentiment data. Hence, the trading week could end on a volatile note.
Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday and 2/10 highs. We’ve created some new uptrend lines, albeit tight ones, to serve as technical cushions along with the psychological 1.55 area.
Present Price: 1.5608
Resistances: 1.5621, 1.5637, 1.5659, 1.5690, 1.5717, 1.5744
Supports: 1.5593, 1.5572, 1.5558, 1.5533, 1.5502
Psychological: 1.55
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