ECB action depends on what the BoE will do, crude sees a key support at $45, and GBP/USD needs to remain above 1.31. These are the key points from today’s discussion on the forex market with Craig Erlam, Senior Market Analyst at Oanda, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.
Key Quotes:
“September, we’ll likely see another cut in deposit rate and expansion of QE by another 20 billion and extending maturity”
“Brent crude seeing a grind lower and likely to test key support level around $45, break here would expose the 200-DMA between $42-40. Break below $40 would be quite significant.”
“GBP/USD – “1.31 is the line in the sand..break lower means we go down to 1.29.”
“Potential move towards 1.35 likely..which is also an inverse head and shoulder.”
“USD/JPY approaching 107.00 levels. If ichimoku is taken out it would be quite significant.”