The cable managed to regain all daily moving averages lost at yesterday’s session. The difference between the Fed members stance makes the dollar lose the momentum.
Lockhart: The Fed tends to raise interest rates in September, but wait 1-2 meeting and you will not see any action and a decision on the US economy. The policy maker is very supportive of a possible rate hike in September.
But Federal Reserve Vice Chairman Stanley Fischer disagrees with the key rate hike in September. Inflation is the major concern, however the employment rate returning to the target level.
Technical view: The supply zone remains between 1.5650, 1.5675, and 1.5700. If a daily close is above 1.5700, bulls aim at 1.5770 initially, later a target is likely to extend towards 1.5860 and even 1.5900 odd. Earlier the cable made a strong ceiling at 1.5700.
The H1 rsi is indicating the pair is overbought. Intraday resistance seems at 1.5630, 1.5650, and 1.5675. Support is found at 1.5560, 1.5520, and 1.5500. Intraday selling is taking place below 1.5520. Buying is possible above 1.5650 with a target at 1.5650, a target at 1.5675 bears risk.
The material has been provided by InstaForex Company – www.instaforex.com