Sideways Trading at the start the week
CURRENCY TRADING SUMMARY – 23rd February (00:30GMT)
U.S. Dollar Trading (USD) with no economic data out the market suffered from a lack of direction and kept to tight ranges on most pairs. Fed member Yellen was dovish as she reiterated her assessment of the US economy as still very weak. In US stocks DJIA -18 points closing at 10383, S& P -1 points closing at 1108 and NASDAQ -1 points closing at 2242. Looking ahead, February Case Shiller house prices forecast at -3.2% vs. -5.3% y/y.
The Euro (EUR) found resistance at 1.3650 and slipped back in Europe on news that the EU was not planning to bailout Greece. Also weighing was the pull back in Oil and sluggish US stocks. Overall the EUR/USD traded with a low of 1.3572 and a high of 1.3655 before closing at 1.3600. Looking ahead, German IFO forecast at 96.1 vs. 95.8 previously.
The Japanese Yen (JPY) momentum stalled on most crosses and the Yen gained as profit taking sent the USD/JPY back to the lower Y91 region. Fluctuating expectations about the timing of US rate hikes are causing volatility in the USD/JPY pair. Overall the USDJPY traded with a low of 91.00 and a high of 91.92 before closing the day around 91.20 in the New York session. Looking ahead, BOJ Meeting Minutes released.
The Sterling (GBP) was quiet on the major holding in a 50 pip range against the dollar for most of the trading day. EUR/GBP found resistance above 0.8800 and fell quietly for the rest of the day. Overall the GBP/USD traded with a low of 1.5446 and a high of 1.5523 before closing the day at 1.5475 in the New York session. Looking ahead, UK Governor King Speaks.
The Australian Dollar (AUD) pivoted the 0.9000 level supported on positive sentiment towards the Aussie and strong buying on the crosses. AUD/NZD is holding above the key 1.2800 level and is in striking distance of all time highs above 1.3000. The AUD/USD was weighed in Europe as the Euro came off highs and gold and Oil eased back. Overall the AUD/USD traded with a low of 0.8972 and a high of 0.9026 before closing the US session at 0.8995. Looking ahead, RBA Deputy Governor Battellino speaks.
Oil & Gold (XAU) opened strong in Asia to test $1130 before slipping for the rest of the day on profit taking and mild USD strength. Overall trading with a low of USD$1109 and high of USD$1131 before ending the New York session at USD$1114 an ounce. Stayed close to the $80 level in a subdued trading day. Crude Oil was down -$0.05 ending the New York session at $80.15.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3424 |
1.3444 |
1.3595 |
1.3655 |
1.3788 |
|
USD/JPY |
90.13 |
90.57 |
91.15 |
92.15 |
93.77 |
|
GBP/USD |
1.5273 |
1.5357 |
1.5485 |
1.5542 |
1.5688 |
|
AUD/USD |
0.8786 |
0.8880 |
0.9005 |
0.9037 |
0.9093 |
|
XAU/USD |
1078.00 |
1098 |
1114.00 |
1127 |
1141.00 |
|
OIL/USD |
78.00 |
80.00 |
80.10 |
81.50 |
82.50 |
Euro – 1.3595
Initial support at 1.3444 (Feb 19 low) followed by 1.3424 (May 18 low). Initial resistance is now located at 1.3655 (Feb 18 high) followed by 1.3788 (Feb 17 high)
Yen – 91.15
Initial support is located at 90.57 (Feb 18 low) followed by 90.13 (Feb 17 low). Initial resistance is now at 92.15 (Feb 19 high) followed by 93.77 (Jan 8 high).
Pound – 1.5485
Initial support at 1.5357 (Feb 19 low) followed by 1.5273 (0.5 of 1.3503-1.7043). Initial resistance is now at 1.5542 (Feb 19 high) followed by 1.5688 (Feb 18 low).
Australian Dollar – 0.9005
Initial support at 0.8880 (Feb 19 low) followed by the 0.8786 (Feb 12 low). Initial resistance is now at 0.9037 (Feb 17 high) followed by 0.9093 (Jan 25 high).
Gold – 1114
Initial support at 1098 (Feb 18 low) followed by 1078 (Feb 12 low). Initial resistance is now at 1127 (Feb 17 high) followed by 1141 (Jan 20 high).
Oil – 80.10
Initial support at 80.00 (Intraday Support) followed by 78.00 (Intraday Support). Initial resistance is now at 81.50 (Intraday Resistance) followed by 82.50 (Intraday Resistance).
