A few releases from Europe are scheduled today. From
technical point of view all European currencies look extremely vulnerable,
particularly against commodity currencies: NZD, AUD and CAD. Swiss Franc has
already broken key supports in these pairs and is rapidly going down. Other
crosses, such as eur/nzd and gbp/nzd as well as eur/aud and gbp/aud are
threatening to break down any time now. What could trigger their fall?
IMF global economic outlook may trigger a sell-off
in Euro and NIESR Gross Domestic Product Estimate may break the British Pound.
Pound has already been hit by poor economic data today and is likely to
continue going down. This is confirmed by both fundamental and technical
factors. Euro is in a slightly better position, but the situation may change
any time now. One of the greatest events that could turn everything around is
tomorrow’s FED minutes from last month coming at 18:00 GMT, followed by FED’s
Ben Bernanke speech at 20:10 GMT.
Pound pairs should be sold on rallies. US dollar
still remains the strongest currency for the time being and should be bought on
dips. The fate of commodity currencies will be decided upon on Wednesday night
when data from Australia is released. See you then.
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