EUR/AUD, EUR/USD Reverse Data Slump; GBP/USD Bull Flag or Double Top
- GBPUSD in range (double top? bull flag?) between 1.6770-1.6840.
- Forex economic calendar continues with US housing data on Wednesday.
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Surprises across the board from the market moving data in the Asian and European sessions leaves several of the major currencies waking up after several days of incredibly low volatility.
For Australia, inflation pressures increased by less than anticipated in Q1'14, no doubt related to the resiliency of the Australian Dollar. Coupled with evidence of continued contraction in China's manufacturing sector, the high yielding currency has claimed title of worst performer on the session.
Out of Europe, the Cable is backing away from its ascending triangle top after the Bank of England struck a cautiously optimistic tone, insofar as the Monetary Policy Committee commented that price pressure would remain subdued (again, thanks to a stronger currency like in the case of Australia in Q1'14). From a technical perspective, the GBPUSD may either be carving out a bull flag or a double top between $1.6770 and 1.6840.
Watch the video for an expanded discussion including the EURAUD and EURUSD.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail email@example.com
Follow him on Twitter at @CVecchioFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.