Daily Forex Preview for February 24, 2016

24 February, 2016

Risk aversion was back in the markets yesterday as the Yen and the Swiss Franc closed the day with gains. Crude oil prices declined strongly yesterday taking the equity markets lower as well as USDJPY is back trading at the 112 handle. Gold prices were also bullish yesterday but the upside gains look to be limited for now.

EURUSD Daily Analysis

EURUSD (1.10): EURUSD continued its declines with prices briefly breaking below 1.10 handle. Prices have been trading off this level for the past few sessions on the 4-hour chart. A break below 1.10 could see a slip to 1.095/1.093 support while to the upside, the break of the falling trend line will see a correction to 1.1105 - 1.113 to retest the broken support level for resistance. The upside bias continues to fade quickly as the Euro posts decline steadily. Price action on the daily chart closed with a small-bodied candle yesterday and, therefore, any signs of a pullback to the declines will be seen on a break above yesterday’s highs of 1.1052

USDJPY Daily Analysis

USDJPY (111.8): USDJPY is back trading near the 112 handle, but the daily chart shows the Stochastics could b pointing to a bullish divergence, which could be confirmed only on a close above yesterday's high of 113.054. On the 4-hour chart, we can see that the Stochastics oscillator is currently posting a higher low against the lower low in prices. Resistance at 113 - 112.5 is key for any hints of an upside correction. A break above this region could confirm a stronger more to the upside for 117. To the downside, 111.31 marks the previous low and a break below this level could see further downside in USDJPY.

GBPUSD Daily Analysis

GBPUSD (1.398): GBPUSD broke the 1.40 handle yesterday with another day of declines. Price action remains bearish with no signs of any correction to the upside. Currently trading at 1.398, the next level of support comes in at 1.38, marking the support off April 2001. Any corrective moves to the upside could see GBPUSD being sold off as 1.41 will be the likely resistance if GBPUSD manages to close above 1.40 handle.

Gold Daily Analysis

XAUUSD (1225): Gold prices turned bullish yesterday on risk aversion and prices are back near the gap at 1227. For the moment, there is a strong bearish divergence being formed with the daily Stochastics marking a lower high. With prices back in the identified resistance level, Gold prices could be limited to the upside. A break below 1200 will confirm a stronger decline down to 1130 followed by 1110.


Source link  
US dollar hit by Trump's comments

The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...

Gold gives up gains

The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...

Inflation in Mexico set to rise on higher fuel prices

Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...


Regional manufacturing indexes point to a stronger ISM manufacturing PMI

The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...

USDJPY Trims Gains. Support Seen At 104 - 103

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...

Dollar Supported, Heading Into FOMC

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...


EURUSD Remains Supported Above 1.110

The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...

GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...

GBPUSD could test 1.32 on the descending wedge

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...

  


Share: