Article originally published on innerfx.com and republished here with permission
Quote of the day:“A sailor without a destination cannot hope for a favorable wind.” ~ Leon Tec
Good morning. The market remains rather choppy as rumours and surprises have been the main drivers this week, so it’s not easy to find charts that don’t look the same these days. The euro trades higher across the board after Greek Prime Minister declared that Greece won’t hold a referendum. The ECB unexpectedly lowered rates to 1.25% at Draghi’s first meeting as ECB President and the dollar is currently recovering some modest ground ahead of NFP and Unemployment report coming out later today. The NFP data and G20 comments are likely to be the main movers today.
Support around 50% fib retracement of last up leg remains intact after several tests and it seems that current recovery will continue. 1.400 is where next important resistance is formed.
Cable holds onto gains around 1.600 after swinging in both directions and resistance between 1.6020 and 1.6050 is intact so far. I remain bearish on intraday / near-term basis while it holds below 1.6050.
I’m still keeping an eye on the resistance zone highlighted below, as current pullback to 1.0050 is probably corrective.
Not a clear buying opportunity yet, but maybe the consolidation will end sometimes soon. In such case, I’d prefer prefer the bullish scenario