Forex Charts
AUDUSD – threatening close above key pivot .8893 & Oct downtrend line
Aussie is staging a strong rally and threatening the Oct downtrend. A close above .8893 will register an important recovery above an old key pivot;
FX Daily
In terms of data releases we have a fairly thin calendar today. In the euro area we expect Italian HICP to increase slightly but to remain below 1%.
GBPUSD – major support zones below market surface at 1.6070 & 1.5900
Like Euro, both the weekly and daily trends have turned down in Sterling and prices are breaking below the July uptrend as well.
EURUSD – break of 1.3500 clears a path for 1.34 pivot/extension target
The weekly and daily trends have turned down in the Euro. This comes after a major reversal (failed 1.39 breakout) at key long-term resistance.
FX Daily
Focus continues to be on emerging markets. Large parts of Asia are closed today due to the Chinese New Year public holiday.
EURJPY – breaking critical 138.28 support; next major support is 135.51
A weekly reversal and weekly trend change is taking place. The reversal occurred where a measured move target aligned with a Fibonacci extension target.
USDJPY – bear triangle forming above key 101.85/77 support
The call for a corrective rally to 102.80/103.06 was realized via yesterday’s 102.89 high. The consolidation forming between 102-103 is showing the marks of a bear triangle.
EURUSD – vacuum of support below minor shelf at 1.3320/00.
Euro is unfolding lower as opined based on the choppy bear consolidation that completed at 1.3750. Longer-term trends from July are now clearly broken leaving only the 1.3508 lows as support before a deeper decline.
FX Daily
Markets will continue to keep a watchful eye on emerging markets but it has been relatively calm overnight with large parts of Asia off today for celebration of the Chinese New Year.
FX Daily
Emerging markets continue to be the focal point. As long as this is the case financial markets will take the lead from the development in the EM currencies and macroeconomic data will be of secondary importance.
USDJPY – bear flag threatening call for a marginal rally to test highs
The bounce from our proposed support zone (101.77) has proven to be choppy and has the hallmarks of a correction. The rally from the low has formed, and broken down from, a bear flag.
EURUSD – downside break of 1.3630/3686 range implies move to 1.3580
We have been treating the rally to 1.3750 as the final leg of a wave-(2) correction. Now the Euro is again threatening to break the uptrend from July as the downtrend reengages.