The EUR/USD is making another run to yesterday's highs near 1.3310 while writing this update, after the downside pressure we've seen this morning the pair rebounded sharply on news that Greek leaders have finally approved the awaited austerity measures that will allow the country to get hold of the 130 Billion Euros worth as a second bailout. Furthermore, the ECB decided to keep rates steady at record low 1.0% , while the ECB head Mr. Draghi mentioned in a press conference following its monthly meeting that the committee didn't discuss benchmark rate cuts during this month's meeting. Meanwhile, at the macroeconomic front; U.S unemployment claims dropped to 358k from 373k last month, 11k below the median estimates.
The pair maintains the upside bias currently pushing upwards, in general, as we mentioned previously the pair has breached a bullish head and shoulders pattern to trade steadily above the neckline of this pattern around 1.3230, while over the short term price has respected the new born ascending trend-line over hourly basis this morning after testing it to rebound, further bullishness is anticipated within the coming period targeting initially 1.3400 followed by 1.3500 areas, while pullbacks should be limited to 1.3275 and 1.3220. The pair opened the day at 1.3259 currently testing 1.3315.
The GBP/USD took an upside push as well today, the central bank of England decided to keep rates steady at 0.5%, but increased APT by 50 Billion pounds, attempting to stimulate growth after the recent contraction in economic activities. The pair jumped more than 50 pips following the news to print a high at 1.5885; however it's currently failing to maintain the bullish moment and hovering around 1.5850 areas after opening the day at 1.5817. In the near term the pair managed to settle above key 1.5800 level, which turned into support after breaching it, we expect price to push to the upside within the coming period followed the over positive sentiment and this technical breach, eyeing the 200 days SMA currently near 1.5930, stability above this level could lead to retest of the major pivot around 1.6130.
The higher than expected inflation figures from china in the form of the CPI pushed the AUD/USD slightly lower this morning, however the effect was temporal and mild. The number came above the expected estimate of 4.00% at 4.5% which is also above the previous reading of 4.1%.
In general, the pair is moving within a steady uptrend after breaching the main symmetrical triangle, in the near term an ascending channel is confining price, main levels to watch for start at 1.0730 to downside a breach below shall lead to a test of 1.0680 major short term support. This level should hold any downside pullbacks, where upside rebounds is expected from there. To the upside surpassing the latest high around 1.0850 may lead to 1.0925 followed by the latest record highs above. 1.01000