The cable posted a big drop in price at yesterday’s session followed by Monday’s selling. The follow up selling pushed the cable below the important support levels in the daily chart.
The US durable goods data boosted the greenback against most majors. The headline durable goods orders rose 2% in July and 2.2% indicating Q2 GDP likely to upgrade today.
Today traders eye US macro data. We guess USDX likely to strengthen with the prelim GDP data.
Technical view: The parallel support finds at 1.5425, yesterday’s low was 1.5453 and today’s low 1.5460 as of now in Asia-pacific session. The 200Dsma finds at 1.5370 the bull last hope remains at 1.5330.
The cable fell below the 3-month ascending trend line and closed below that. At yesterday’s session, the bulls lost 20Wsma as well. These factors indicating further pair in the coming days. This week closing and Monday’s closing price indicate strong signals for the rest of the year.
Intraday support finds at 1.5450, 1.5425 and 1.5370. Resistance seems at 1.5490, 1.5520 and 1.5570. The trend favors selling on the rise until the price close below 1.5680.
Intraday selling opens below 1.5450 accelerates below 1.5420 towards 1.5390 and 1.5370. The panic likely to be triggered below 1.5330.
We guess today’s low might be between 1.5390 and 1.5370. The hourly oscillators indicating mild bounce, besides US prelim GDP likely to support the greenback sell on rise strategy likely to favors today’s trend.