Daily FX Analysis: GBP Data in Focus After Initial Correctional Moves
Littlefish FX | May 20, 2013 05:49PM ET
Our initial correctional moves have provided some nice plays with the stochastics crossovers playing out well. Hopefully a few of you managed to capitalise on these; apart from that Monday was extremely quiet.
Tuesday sees a flurry of U.K. data in the morning which could offer some interesting plays.
Key press conferences are scheduled from with Member Bullard and Dudley, SNBs Jordan and BoC and new BoE governor Carney.
SNBs Jordan could be an interesting one to watch for EUR/CHF longs. Look for comments on the relative value of the Swissy vs the euro.
EUR/USD
The euro had a nice correctional move as we predicted. 1.2900 handle is key, as we approach the upper end of a stochastic cross need to see whether we get a reversal or the correctional move continues slightly higher.
We prefer the Short plays from 1.3000 handle. If you aren't short or looking to play stochastics crosses lower, we wouldn't be surprised to see this pair continue its correction higher before another push lower. Risk events later in the week may be key for this move.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.