I’m seeing pullbacks on the big market moves recently.
Will this Cable correction offer a chance to catch the selloff?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/JPY testing a key support level as risk-off flows surged. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Market selloff pauses on softer than expected sanctions on Russia
U.S. President Biden says not likely to cut Russia off from SWIFT for now
Ukraine media reporting presence of 60,000 Russian troops
New Zealand headline retail sales rebound 8.6% after earlier 8.2% slide
New Zealand core retail sales up 6.8% vs. projected 5.5% gain
New Zealand trade deficit widened from 975M NZD to 1082M NZD
Taiwan to join list of countries imposing sanctions on Russia
Japan to immediately impose sanctions on Russia, freeze assets in some Russian banks
U.K. GfK consumer climate index slipped from -19 to -26 in February
Asian markets rebound, but investors wary of risks from Russia
RBNZ official Orr: Events in Ukraine worsen upside inflation concerns
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. core PCE price index at 1:30 pm GMT
U.S. headline and core durable goods orders at 1:30 pm GMT
U.S. personal income and spending at 1:30 pm GMT
ECB head Lagarde’s speech at 3:00 pm GMT
U.S. revised UoM consumer sentiment index at 3:00 pm GMT
Emergency virtual NATO summit coming up
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: GBP/USD
Safe-havens have been on a tear these days, as risk-off flows stemming from heightened tensions between Russia and Ukraine are lifting dollar demand.
A bit of a rebound took place after those strong moves, though, so we might have a chance to catch retracements.
This one on Cable is looking pretty neat, as the pair is retreating to the Fib levels on the latest tumble.
Price is inching closer to the 50% Fib around the 1.3450 minor psychological mark but might still pull up higher to the 61.8% level that’s in line with a former support area.
At the same time, Stochastic is giving off bearish vibes at the overbought zone. The oscillator is also showing a bearish divergence, as price is making lower highs.
To top it off, the 100 SMA just crossed below the 200 SMA to confirm that the selloff is likely to resume.
If any of the Fibs hold as a ceiling, GBP/USD could slump back to the swing low or much lower. Of course this might hinge on overall market sentiment, as well as the outcome of the U.S. core PCE price index release.
Planning on trading this one? Be mindful of potential weekend gaps!
