Daily Outlook

February 19, 2016

Speculation on oil production freezes and positive US data allowed risk sentiment to improve. Oil rose 7 percent overnight after Iran voiced support for a freeze production deal led by Saudi Arabia and Russia. Under the negotiation, production would be frozen at their January levels. Markets responded positively to the Iranian minister’s support for the OPEC and non-OPEC decision, however sustained price gains seem unlikely until Iranian commitment is confirmed.

Equities pushed higher as risk appetite improved. European markets closed in the green with the DAX and FTSE100 up 2.7% and 2.9% respectively. Wall Street traded higher yesterday, led by gains in energy and materials as oil prices held on to their gains.

Ahead of FOMC tonight USD is trading higher against all counterparts. EURUSD hit 9 day lows after the US data while GBPUSD dropped even further to 16 days lows of 1.4232 from 1.4660 levels last week.  US producer price index rose 0.1% in January, relative to expectations of a 0.2% decline, while excluding volatile food and energy categories, core prices climbed 0.4% (0.1% exp).

For now, the agreement to stabilize production, along with the acceptance of accommodative monetary policy in Europe, relative stability in the Chinese yuan has helped calm frayed nerves globally.

As a friendly reminder, please remember these strong correlations that have formed lately:

OIL rises – Stocks rise too, as well as Canadian Dollar.

Stock rise – USDJPY rises, EURUSD drops, Gold drops.

Please note: Try our new trading platform www.easymarkets.com and login with your same username and password you use at easy-forex. Experience better user interface with news, Technical Analysis and charts – all in one page.

Currency Updates:

EUR/USD Intraday: the downside prevails.

Pivot: 1.1185

Our preference: short positions below 1.1185 with targets @ 1.1085 & 1.1040 in extension.

Alternative scenario: above 1.1185 look for further upside with 1.1210 & 1.1260 as targets.

Comment: the RSI is mixed to bearish.

Supports and resistances:
1.1260 ***
1.1210 ***
1.1185 ***
1.1128 Last
1.1085 ***
1.1040 **
1.0990 ***

USD/JPY Intraday: rebound expected.

Pivot: 113.55

Our preference: long positions above 113.55 with targets @ 114.52 & 114.90 in extension.

Alternative scenario: below 113.55 look for further downside with 113.00 & 112.35 as targets.

Comment: the RSI lacks downward momentum.

Supports and resistances:
115.25 ***
114.90 ***
114.52 ***
114.08 Last
113.55 ***
113.00 ***
112.35 **

GBP/USD Intraday: under pressure.

Pivot: 1.4340

Our preference: short positions below 1.4340 with targets @ 1.4240 & 1.4205 in extension.

Alternative scenario: above 1.4340 look for further upside with 1.4400 & 1.4465 as targets.

Comment: technically the RSI is below its neutrality area at 50.

Supports and resistances:
1.4465 ***
1.4400 **
1.4340 ***
1.4286 Last
1.4240 **
1.4205 **
1.4145 ***

AUD/USD Intraday: the upside prevails.

Pivot: 0.7105

Our preference: long positions above 0.7105 with targets @ 0.7190 & 0.7210 in extension.

Alternative scenario: below 0.7105 look for further downside with 0.7080 & 0.7060 as targets.

Comment: technically the RSI is above its neutrality area at 50.

Supports and resistances:
0.7240
0.7210
0.7190
0.7169 Last
0.7105
0.7080
0.7060

SPI 200‏ (ASX)‏ (H6) Intraday: the upside prevails.

Pivot: 4880

Our preference: long positions above 4880 with targets @ 4950 & 4975 in extension.

Alternative scenario: below 4880 look for further downside with 4820 & 4770 as targets.

Comment: the RSI lacks downward momentum.

Supports and resistances:
5000
4975
4950
4925 Last
4880
4820
4770

Important note: These technical and research reports are provided to easyMarkets® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easyMarkets® to you to engage in any trade. Hence, easyMarkets® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easyMarkets®. If you do not agree to this, you are strongly advised not to use these reports.

easyMarkets Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. easyMarkets recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning easyMarkets’ products.

Back to daily Archive

join THOUSANDS OF other people
who trade with easymarkets

Two minutes is all it takes.

You're almost there!

Finish your application and start trading today.

DON'T MISS A TRADING OPPORTUNITY

Two minutes is all it takes.