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May 31, 2013
Flash: EUR supported by confidence as GBP technically bordered - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the EUR has found support from confidence indicators while GBP looks technically bordered.
He begins by noting that apart from the consolidating dollar, the EUR also found partial support on better than expected confidence indicators. In the interim, he sees that the EUR/USD may resist downside dips if the broad dollar continues to undergo a consolidation, with the pair now attempting to stay afloat above its 200-day MA (1.3032) ahead of the next resistance expected towards 1.3100.
Looking to GBP/USD into the end of the week, the pair may be bordered by the 55-day MA (1.5273) and the 1.5330 area while on the downside, supports are expected on approach of 1.5200 and then 1.5130. He writes, “Our view remains unchanged and the cable may remain suspicious of excessive upside against the dollar for now barring a further dilution of bullish broad dollar sentiment.”
He begins by noting that apart from the consolidating dollar, the EUR also found partial support on better than expected confidence indicators. In the interim, he sees that the EUR/USD may resist downside dips if the broad dollar continues to undergo a consolidation, with the pair now attempting to stay afloat above its 200-day MA (1.3032) ahead of the next resistance expected towards 1.3100.
Looking to GBP/USD into the end of the week, the pair may be bordered by the 55-day MA (1.5273) and the 1.5330 area while on the downside, supports are expected on approach of 1.5200 and then 1.5130. He writes, “Our view remains unchanged and the cable may remain suspicious of excessive upside against the dollar for now barring a further dilution of bullish broad dollar sentiment.”