Entering into US session, USD jumps broadly in the current 4H bar as seen in 4H heatmap. It’s followed by NZD and then AUD. On the other hand, despite better than expected PMI manufacturing, GBP is suffering some broad based pressure, followed by CHF and then EUR.
Price actions in the hourly chart support more near term upside in USD. EUR/USD’s price actions from 1.2283 are clearly corrective looking, which indicates fall from 1.2475 is not completed. The pair is now testing 1.2285 support for the third time in four trading days. Firm break there will indicate that rebound from 1.2154 has completed with three waves up to 1.2475. And decline from 1.2555 is resuming.
Will it break 1.2285, or will it not? That’s the question in many traders’ minds.
Similarly, GBP/USD’s price actions from 1.4008 are also corrective looking, which suggests that fall from 1.4234 is not completed. The failure to sustain above 4 hour 55 EMA also carries some bearish implication. But still, we need to see break of 1.3982 to indicate that completion of the rally from 1.3711. Hence, 1.4008 is the first support to test for GBP/USD, and then 1.3982.
