Daily Forex Preview for February 29, 2016. Dollar gains on upbeat GDP data

29 February, 2016

An upside revision to the US GDP for the fourth quarter sent the Greenback stronger across the board. However, market sentiment is currently pointing to a modest risk aversion with the Yen gaining in early Asian trading, which could, in turn, see the Euro attempt to post a recovery rally. End of month flows could also keep the US Dollar volatile on the last trading day of the month.

EURUSD Daily Analysis

EURUSD (1.09): EURUSD closed Friday with strong losses, as prices briefly fell below the 1.10 handle. The decline comes after nearly three days of sideways price action indicating a further decline to the downside on a successful close below 1.089. With prices trading in the support level of 1.095 - 1.093, EURUSD could be attempting a go at reclaiming the 1.10 support/resistance level. However, the upside momentum is capped with resistance at 1.113 - 1.1105 likely to hold the rally. Below 1.093, EURUSD could be looking at testing the previous lower support at 1.0835 - 1.0825.

USDJPY Daily Analysis

USDJPY (112.9): USDJPY rallied strongly after forming a doji pattern last week near 112 support. The support saw USDJPY rally towards 113 region but current price action is bearish with Greenback easing against the Yen. To the downside, a continued momentum could see USDJPY test 111.31 levels in the near term following the hidden bearish divergence formed on the charts. A test to 111.31 with a potentially higher low in the Stochastics could see a move to the upside on a close above 113 - 112.5 resistance. The upside target to 117 remains in place as long as USDJPY does not see a daily close below 111 – 111.31 support.

GBPUSD Daily Analysis

GBPUSD (1.387): GBPUSD closed bearish on Friday following Thursday's attempt at a bullish close. On the daily chart, prices are trading close to the lower median line which if supports the prices, a short-term bounce could be expected. Currently, GBPUSD has formed a doji on the 4-hour chart followed by a bullish close higher. A continuation to this could see prices eventually rise back to the 1.40 handle where resistance is previously established. The Stochastics on the 4-hour chart also points to a bullish divergence taking shape. Below the current lows at 1.387, GBPUSD could be at risk for a dip to 1.385.

Gold Daily Analysis

XAUUSD (1226): Gold prices continue to trade sideways with the 1200 support holding prices strongly. However, the strong consolidation is likely to give way to a strong momentum led rally or a decline. On the 4-hour chart, minor support/resistance is seen at 1230 - 1225 region. The median line connecting the recent price action shows Gold breaking outside the lower median line. With a near-term top formed at 1250 and a modest lower high being formed, Gold could remain range bound between 1230/1225 and 1200 region. The bias remains to the downside with the potential to test 1130 on a break below the 1200 support.


Source link  
ISM indexes suggest strong activity

The Institute of Supply Management's business survey covering the manufacturing and non-manufacturing sector showed that activity...

Trump hits out at Fed once again

Amid the rising threat of trade wars and the optimism of the looming U.S. and China trade talks, the U.S. President Trump hit out at the Federal Reserve last week...

Japan's second quarter GDP rebounds

Japan's economy was seen rising more than expected in the three months ending June 2018. Growth was helped by strong...


Powell gives testimony

The U.S. Federal Reserve Governor, Jerome Powell, gave his two-day testimony to the U.S. Congress last week. In this testimony, Powell cautioned...

Euro currency makes a comeback

The common currency which had fallen sharply over the past few weeks and was eventually seen hovering above the support level of 1.1540 level was seen...

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...


In the past 24 hours Bitcoin has lost -3.26% and reached $3497.97296224. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4129% and is now at $1.1327. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -15.74% and is now at $91.5184129661. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%
  


Share: