New York Forex Report: UK Factory Output Sees Biggest Fall Since 2013

New York Forex Report: UK Factory Output Sees Biggest Fall Since 2013

New York Forex Report: USD rotation continues in the absence of any tier one data. US Crude Oil inventories ad Monthly Budget Statement the only noteworthy data sets over the coming US session though neither are expected to provide a catalyst for any directional moves.

FX Majors: Over an otherwise quiet European morning, it was UK data which took centre stage ahead of the Bank of England quarterly event tomorrow. UK manufacturing Production feel -1.9% YoY in March, marking the biggest decline in factory output since 2013. This data comes in the wake of a raft of worse-than-expected PMI data sets and highlights the deteriorating economic environment in the UK. Tomorrow the BOE’s “Super Thursday” will see the latest rate decision, meeting minutes and update of the quarterly inflation report. NIESR GDP estimate at 1500 will be key data focus

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

Technical: EUR bulls back under pressure with the failure at 1.1450, the next support level to be tested will be the symmetry support at 1.1368 failure here opens a return to retest 1.1240 support,
Retail Sentiment: Bearish
Trading Take-away: Long

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

Technical: The failure at 1.4470 opens a deeper correction to 1.4280 next. Intraday resistance is now sited at 1.4540/60. Over 1.46 refocuses bullish spirits towards 1.4828
Retail Sentiment: Neutral
Trading Take-away: Neutral

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

Technical: 105.50 weekly swing objective achieved, 107.50 resistance now becomes support as the corrective move aims to retest 110 from below
Retail Sentiment: Neutral
Trading Take-away: Neutral

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

Technical: Bears now target weekly symmetry objective at 120.60. The breach of intraday resistance at 123.30/50 targets 126.80 a close above here eases immediate downside pressure.
Retail Sentiment: Neutral
Trading Take-away: Neutral

Commodities FX: Oil prices fell over the European morning on Wednesday on news that Saudi Arabia, far from ceasing production as was originally hoped, will now be increasing production over 2016, adding fresh concerns for the global oversupply that has weighed on Oil markets for the last few years

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

Technical: Initial test of .7330 attracts buyers resistance is sited at .7490. A failure at.7300 threatens medium term bullish bias, below .7240 establishes a bearish medium term stance.
Retail Sentiment: Bullish
Trading Take-away: Sidelines

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

Technical: 1.30 upside objective achieved expected correction to retest 1.2740/60 from above as this level should now act as support for further upside corrective action.
Retail Sentiment: Neutral
Trading Take-away: Neutral

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

Technical: Gold has tested and held the 1260 symmetry swing level, 1283 is now resistance for a further leg of corrective price action to set up a test of the pivotal 1240. Over 1285 suggests early upside reversal targeting a retest of 1303 next.
Retail Sentiment: Neutral
Trading Take-away: Neutral

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

Technical: While 43.00 supports the bullish consolidation a break of 44.90 set ups a retest of prior cycle highs at 46.76 with 47.78 the next upside objective. Failure at 43.00 opens a move to 41.90 as the next support level
Retail Sentiment: Neutral
Trading Take-away: Neutral