July 2014

Ichimoku shows USD strength vs EUR & GBP

Ichimoku (cloud) chart analysis shows the US dollar index continuing to gain strength following the low touched at the beginning of July, says David Linton at Updata. Gains against the euro and GBP should be expected although for Cable, a move below 1.6730 is needed for the longer-term rally to end.

GBP/USD and FTSE may struggle for further gains

Levels above 1.7000 may prove hard to sustain for Cable in Q3 according to analysts at 4CAST. A further short-term rally followed by a downward correction is most likely, targeting the 1.6500 area. The FTSE may see limited gains but 7000 is a significant resistance level even if the all-time high of 6951 is breached.