16th July 2014 Market Outlook

Pound Dollar – GBP/USD shot higher from its 1.7060 support level yesterday as we expected in our 15th July 2014 Market Outlook. 1.7178 will be Pound short term resistance and price will need to break through this resistance level to continue its bullish move. In the near term, price is likely to continue to trade within this 1.7178—1.7060 range. Traders may consider going long again if price retrace back to its 1.7060 support level to join the long term bullish trend.

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Pound Loonie – In GBP/CAD price shot significantly higher yesterday as we expected in our 15th July 2014 Market Outlook. Price just cut through its 1.8398 resistance level like a hot knife through butter and it’s currently trading just below its 1.8465 key resistance level. Traders that have longed as we recommended in our 15th July 2014 Market Outlook may consider taking profits or scaling out at this 1.8465 key resistance level. Traders that have missed out this long opportunity may consider going long if price retrace back to its 1.8398 support level (previous resistance level)..

*Bank of Canada will announce their interest rate decision and their monetary policy report later today at 1400GMT & 1430GMT. Volatility is expected to pickup during this high impact news release. Traders are recommended to stay aside during this news announcement to avoid whipsaws.

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Euro Dollar – EUR/USD broke its 1.3585 support level yesterday. The short term trend is bearish at the moment and traders may consider selling short when sell signals arise. Euro is likely to continue to head lower in the coming days and the next key support level is not seen until 1.3512.

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