The cable moved higher after the Federal Reserve Head speech. Ms. Yellen said the U.S. economy and job market are still far from healthy condition, and still require plenty of support from the central bank’s low-interest-rate policy. The unemployment rate currently stands at 6.7%, well above the 5.2%-5.6% range that the Fed officials see as normal. Annual inflation is running just above 1%, well below the central bank’s official 2% target.
Traders eye today's manufacturing PMI data. The geopolitical tensions in Ukraine made an impact on manufacturing and new orders. In the other hand the domestic service and retail sector will show a good strength. The manufacturing output index has been in a down trend for the last 6 months. This time we can see a humble decline in March.
Technical view-
Weekly basis
The pair has been continuing its 6-day winning steak. Due to the overbought conditions in the H4 chart, the pair didn't fly to higher levels. As of now, the pair is trading at the 1.666 levels. We can see the new targets immediately at 1.6718, and later at 1.6741 and 1.6786 (intraday) once the candle close above the 1.666 level in H4 chart. On the down side, support exists at 1.6620, 1.6589, and 1.6556 levels. RSI favors bears. Until the pair closes above the 1.666, sit on sell side is the best strategy.
S1 1.66 R1 1.666 (CB)
S2 1.6589 R2 1.6718
S3 1.6556 R3 1.6741
Weekly trend will change once the candle will close above the level of 1.6718 (R2 and break down level) in the H4 chart.
On the positional basis, if the pair come out of the trading range and gives a breakout above the level of 1.6741, we will see 1.6823 and 1.695 in coming trading days.
