4 Jul 2012

The markets jump with the "good" news from the EU summit meeting. Evan as at yesterday, both the Europe and the US market are up.

However, EUR was kep within bound 1.2620 and 1.2570. It show occassion of breaking out in either direction but was contained. Now it is hovering at 1.2590 at Asian Time.

The pound was too confined, with sign of consolidation. The band is 1.5720 and 1.5660. The mean is 1.5680.

What will be the next big news that will swing the pound out of the band? Fed QE?

Looking at the technicals for today sign of movement, the is a potential for pound to gain a high at 1.5760/70 based on 1 day EMA 100 and EMA 200.

CCI is showing sign of going down should pound break 1.562, the next support is at 1.5580.

With only a major news at 1630 on UK service PMI and the US on holiday, I expect the pound to continue to hover at the 1.568 band at EMA55.

As such, a sell at EMA100 and a buy at EMA21 at 1.5715 and 1.5652 will be good with a profit target of 20-30 pips.