Wednesday’s Technical Analysis on EUR/USD,GBP/USD,USD/JPY
FX77 | Apr 20, 2016 12:10AM ET
The governor of the Bank of England Mark Carney says at the House of Lords Economic Affairs Committee on Tuesday afternoon that in the event of Brexit it would be "less likely" that the City of London will retain its position as one of the world's greatest financial sectors and would bring huge risk for the financial stability. He said if necessary, BOE had room for an nterest rate cut but they didn’t say they had an appetite for negative interest rates. He was "not a believer in the concept of helicopter money" and indicated that the risks may increase in low interest rate environment. From the chancellor to the governor of BOE, they agreed the Brexit would bring negative effect to GBP. Because of the big uncertainty as the referendum comes closer and closer, it is very hard for GBP to form a bullish trend. More likely is that GBP will further fall down due to the cautious attitude of the market.
EUR/USD
Seen from Chart H1, after the small correction, EUR/USD still has the momentum for a second rise in the morning session. However, seen from the long-term MACD (blue), the rise can not be too high and we also need to be cautious about the continuity. We are cautious call options buyers before the 1.1380 resistance level in the morning session. Take chances to turn to put options. (HKT)
Support: 1.1320/1.1300 Resistance: 1.1380/1.1400
GBP/USD
GBP/USD went through a big rise yesterday. Seen from Chart H1 in the morning, need for a pullback from high level exists. We can mainly purchase put options before the European market opens and stop it for a while at 1.435. If it breaks below there, continue to purchase put options. (HKT)
Support: 1.4350/1.4300 Resistance: 1.4423/1.4464
USD/JPY
Seen from Chart H1, the trend tends to fall so we can mainly be bearish. After the price breaks above 109.21, stop being bearish for a while. As it may go back to rise, we will mainly wait for chances to purchase call options.
Support: 108.80/108.48 Resistance: 109.31/109.40 (HKT)
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