By Fast Brokers – The Cable is holding strong despite weakness during the Asia trading session. China’s economic data wasn’t able to spur a risk rally and U.S. data has printed mixed. Investors are digesting today’s developments and are opting to stay neutral for the time being. While China’s GDP and Industrial Production numbers printed about in line with expectations, CPI and PPI dragged, meaning China could keep its policy loose for longer. This would normally be a positive for the risk trade, yet it seems the external pressure building on China to tighten is diluting the positive data. Meanwhile, U.S. manufacturing continues to outperform and unemployment remains at an uncomfortable level, same story different day. Hence, today’s data supports the Fed’s stance to keep its monetary policy loose for the foreseeable future, a positive catalyst for the risk trade over the medium-term. UK Consumer Confidence came in lower than anticipated today, yet the figure isn’t having a discernable impact on the Cable. The UK will be relatively quiet on the data wire again tomorrow, leaving the spotlight on the U.S. with Building Permits and Prelim Consumer Sentiment on the way. Additionally, earnings from U.S. bellweathers could move the Dollar as they come in, so investors should keep an eye on the news wire before and after the bell.
Technically speaking, the Cable faces technical barriers in the form of intraday, 2/23, and 2/17 highs. Additionally, the psychological 1.55 level could continue to serve as a solid obstacle over the near-term. As for the downside, the Cable has multiple uptrend lines serving as technical cushions along with intraday, 4/13, and 4/8 lows. Additionally, the psychological 1.54 area could continue to serve as a solid support.
Present Price: 1.5470
Resistances: 1.5470, 1.5494, 1.5522, 1.5539, 1.5554, 1.5575
Supports: 1.5444, 1.5429, 1.5404, 1.5386, 1.5358, 1.5337
Psychological: 1.55, 1.54, 1.53, February highs and April Lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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