New York Forex Report: Sterling Slides On Brexit Fears – US Retail Sales Ahead

New York Forex Report: Sterling Slides On Brexit Fears – US Retail Sales Ahead

New York Forex Report: The European morning was dominated by a sharp sell-off in GBP on news of the emergence of a new poll which suggests the majority of UK citizens are in favour of leaving the EU. This news, coupled with continued down-side in Oil has weighed heavily on Sterling which also has some steep obstacles ahead with the UK March Budget announcement and the BOE meeting to follow. USD has been a little firmer over the European session and traders now look ahead to February Retail Sales which are expected to show a slight improvement.

EURUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Fundamental: EUR traded lower over early Europe as firmer equities and stronger USD weighed. Upcoming US data to be key short-term driver ahead of tomorrow’s FOMC

Technical: Intraday support is sited at 1.1060/40 while this survives expect a further grind higher to test pivotal resistance at 1.1370. Failure at 1.10 suggests false break and opens retest of bids towards 1.0820

Interbank Flows: Intraday support is sited at 1.1060/40 while this survives expect a further grind higher to test pivotal resistance at 1.1370. Failure at 1.10 suggests false break and opens retest of bids towards 1.0820
Retail Sentiment: Neutral
Trading Take-away: Neutral

GBPUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Fundamental: Weaker Oil prices and growing Brexit fears are weighing heavily on Sterling ahead of the UK Budget announcement and BOE meeting later this week.

Technical: 1.4424 corrective objective achieved, Profit taking pull back should find renewed buying interest towards 1.4280 setting a platform to challenge 1,4570 offers as the next upside objective . A failure at 1.42 opens a retest of bids towards 1.41

Interbank Flows: Bids 1.4250 stops below. Offers 1.4450 stops above
Retail Sentiment: Neutral
Trading Take-away: Neutral

USDJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Fundamental: As anticipated, the BOJ has chosen to keep its extra-loose policy unchanged, but not before some heightened volatility in the USDJPY market pre-announcement. Markets reacted to the BOJ;s rather neutral message by buying JPY.

Technical: 112.30/10 continues to support expect a further leg of corrective gains, to retest the broken neckline support at 115/116. Failure at 112 open 11 again.

Interbank Flows: Bids 112.50 offers below. Offers 114.50 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines

EURJPY
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Fundamental: EURJPY trading lower driven by post-BOJ JPY strength as JPY seen in demand following the BOJ’s neutral rates message.

Technical: While 125 acts as support for the current advance expect a test of symmetry resistance at 128.15 as the immediate corrective objective. Failure at 124.50 suggest false upside break and opens retest of 123

Interbank Flows: Bids 125 stops below. Offers 127.50 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines

AUDUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Fundamental: AUDUSD continues to extend losses on the back of the RBA March minutes which highlighted further scope for easing as wage-growth remains lows. Stronger USD and weaker commodities also weighing.

Technical: While .7400 supports intraday expect further upside pressure targeting .7672 next. Only a failure at.7300 support threatens near term bullish bias

Interbank Flows: Bids .7400 stops below. Offers .7600 stops above
Retail Sentiment: Bearish
Trading Take-away: Long

USDCAD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Fundamental: USDCAD corrected against recent losses over the European morning today as weaker OIl prices and a stronger USD led the pair higher. Oil is pressured by news of Iran’s oil minister having dismissed the idea of a production cap, saying the country will keep increasing output until it reaches pre-sanctions levels of four million barrels a day.

Technical: While 1.3400 contains the recovery, downside pressure remains the driver with bears focusing on a AB=CD ultimate downside objective at 1.2966. Only a close over 1.3650 negates the bearish bias.

Interbank Flows: Bids 1.3150 stops below. Offers 1.3350 stops above
Retail Sentiment: Bullish
Trading Take-away: Short