FX Market Recap
- The greenback traded bullish at 97.338, adding +0.011 points in early Asian trade on Wednesday.
- Australian dollar printed a more than 4-month low as investors focus Chinese and European figures for clues on whether the worst is over for the global economy.
- UK unemployment rate fell to its lowest low since the mid-1970s in early 2019, as employers hired more people in the run-up to the actual date for Britain’s EU departure.
- The U.S. – China trade war is still in play, keeping the Risk Off sentiment in the market.
GBP/USD – Oversold Pair Is To Gain Support
The Cable traded bearishly for a third consecutive day, slumping to a recent 2-week low of 1.2906. The sell-off triggered as British Pound suffered from the usual lack of development in cross-party Brexit discussions, and as the employment figures came in mixed.
The UK unemployment rate plunged to 4.8% in the three months to March, its weakest since 1974. Whereas, wages growth slid to 3.2% from 3.5%, missing the economist’s forecast of 3.4%.
GBP/USD – Technical Outlook
The GBP/USD is trading above 1.2875 resistance area and has not only closed a candle above this level but also formed a bullish candle. So it’s a bit confusing situation now, is it suggesting that bulls are taking over the market? Well, let’s wait and watch hour GBP/USD closes next candle on the 4-hour chart.
On the lower side, support can be seen around 1.2875 and 1.2790 along with resistance around 1.2950 today.
Support and Resistance
Key Trading Level: 1.3048
GBP/USD – Trade Tips
Consider staying bullish over 1.2900 to target 1.29500 today.
NZD/USD – Buying Zone vs Bearish Trend
The main trend is still bearish. There’s a ‘Double Top’ pattern, which has been confirmed, so the price is likely going to test the nearest support at 0.6543 in the short term.
However, previously we had a ‘Hammer’ pattern, so it’s possible to have an upward correction little later on. So, if any bullish pattern forms thereafter, the pair could test the closest resistance at 0.6579 – 0.6687.
Support and Resistance
Key Trading Level: 0.6585
NZD/USD – Trade Tip
Consider selling below 0.6550 and buying above the same level to target quick 50 pips on both sides. All the best for today!