Furthermore, broad based technical correction in the USD also weighed over the pair. The result was a sharp fall to 1.4529 levels. The currency pair dropped to 1.4519 levels in Asia today before recovering to trade to around 1.4550 levels.
The data docket in UK is light with just construction PMI due for release. Markets expect construction PMI to show the pace of expansion remain largely unchanged in April . However, we should be ready for a weaker-than-expected figure since Brexit fears may have forced builders/buyers to delay spending. Across the pond, US ADP employment figure is due for release.
Support – 1.4529, 1.4459, 1.44
Resistance – 1.4593, 1.4636, 1.474
- Pair’s rebound from 10-DMA support followed by a move above 1.4548 (23.6% of 1.3835-1.4770) indicates prices could be heading higher to 1.46 and 1.4636 (38.2% of 1.5930-1.3835).
- Daily still sits well above 50.00 levels, indicating possibility of a rebound from yesterday’s sell-off.
- On the lower side, failure to sustain above 1.4548 followed by a dip below 1.4514 (Mar 18 high) would signal continuation of yesterday’s sell-off. Below 1.4514, support at 1.4436 stands exposed.