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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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UK MPC minutes and unemployment data versus US Beige book this evening

Article By: ,  Financial Analyst
July 18, 2012 9:00 AM

 

EUR/USD
Range: 1.2270-1.2305
Support: 1.2150
Resistance: 1.2350

We have a quite day for European data after the German ZEW index came in yesterday at consensus with the components showing some green shoots. Fed Chairman Bernanke added nothing new yesterday with QE3 just an option still for the Central Bank. The Euro traded both ends of the range down to 1.2188 from 1.2315. Not an easy market and another failure at both ends of the range so I’m going keep the powder dry today and trade a break of 1.2150-1.2350.

 

 

 

GBP/USD
Range: 1.5638 – 1.5667
Support: 1.5580
Resistance: 1.5720

Sterling continues to trade in the range ahead of the MPC minutes and unemployment data this morning with EUR/GBP continuing to trade around the 0.7850 level. The minutes today will reveal the voting pattern around last month’s extension of QE by £50 billion with most expecting a unanimous vote on both the bank rate and asset purchases. The UK unemployment data is released at 9.30am and is expected to show the claimant count at 10k and the unemployment rate unchanged at 8.2%.

 

 

 
AUD/USD
Range: 1.0293-1.0324
Support: 1.0200
Resistance: 1.0350

The lifestyle looked set to close yet again below the 200-day moving average at 1.0275 after Bernanke disappointed the QE junkies with no immediate QE3 plans, but just as the technical traders were getting short the resilience in the AUD kicked back in and we trade back on the 1.0300 handle and testing my resistance area 1.0330-50. I just can’t argue with the price action and with the RBA seemingly on hold for the moment it seems it’s just a matter of time before 1.0350 is broken and we target 1.0500.

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