Cable’s (FXB, quote) recent revival which was signalled with a two bar reversal off the strong support platform at 1.5163 came to a juddering halt today on the release of the CPI data. Until this release cable had been testing the 1.5474 area as well as the 100 ma which capped the recent rally.
With China facing an economic slowdown and many questioning whether or not the nation’s government data presents a reliable picture of just how bad the situation is, metal prices have fallen to multi-year lows.
This Morning’s Trending Stocks
Trading in China Railway Group Ltd shares was suspended on Monday, as the company revealed it plans to integrate its assets with those of main subsidiary, China Railway Erju Co Ltd.
The GBPUSD pair fell significantly during the session on Monday, but turned back around to form a large hammer. With this, it looks like we are trying to break out to the upside but there is a significant amount of resistance at the 1.55 handle.
AUDUSD has been moving higher in the past few days but it could be a large correction from the longer-term downtrend.
This Morning’s Trending Stocks
China’s (FXI, quote) economic growth failed to rebound in August as expected, signaling that the central government may have to introduce more support measures.
EURGBP is still moving sideways on its 1-hour forex chart, bouncing off support at the .7260 area and finding resistance at .7360. Price is on its way up to test the top of the range once more while stochastic is moving down from the overbought zone, suggesting that the resistance might hold.
AUDUSD stays below the downward trend line on daily chart, and remains in downtrend from 0.8162.
