FOREX MARKET NEWS AND ANALYSIS
- U.K. PMI Services helped the Pound Group to Show Reversal Signals.
- Main Pairs Against the US Dollar Keeps Consolidating.
- European Indices Close Lower.
U.K. PMI Services helped the Pound Group to Show Reversal Signals.
PMI Services in May reached 54 pts, the highest level for three months. After the data release, GBPUSD raised to 1.34 level. Now we expect a corrective move before a new bullish cycle. Invalidation level remains at 1.32544.
As we expected in our last Daily Update, GBPAUD made a bullish move from the second weekly support to the weekly pivot level direction. Now after the impulsive move, we expect that the price could make a consolidation move as a flag pattern before proceeding with its previous movement.
GBPNZD is making a potential bottom structure if the breakout of the 1.91286 level activates the figure, with the profit target at 1.93377. We are surveilling the 1.9005 level as Control Level.
Main Pairs Against the US Dollar Keep Consolidating.
The common currency still is developing a consolidation structure after the impulsive move started in the previous week. RSI has found support at the 41.69 level which makes us foresee a new clue for the bullish reversal move that could be starting.
The inversely correlated currency with the Euro and Swiss Franc is also making a sideways consolidating structure. We expect more declines for this pair; our first bearish target is 0.9815, the second target is 09783 level. Invalidation level is 0.9983.
European Indices Close Lower.
The FTSE 100 broke down the ascending flag pattern in the blue box. The invalidation level remains at 7,803 pts. In the same way, the RSI has broken down its ascending flag pattern. The British index could visit the 7,500 level, or if it moves below this level, the FTSE could make a second leg down before a new bullish cycle.
DAX 30 has made the same breakdown in the ascending wedge pattern. RSI also has broken down its ascending wedge. The first bearish target is 12,528. In case that price falls below 12,386, the next bearish targets are 12,125 and 11,990.