- English
- عربي
Analysis
.jpg?height=93&quality=100)
DXY – The dollar had a big drop yesterday (just over half a percent), today the picture is more mixed. The price candle has developed a long wick to the downside showing some buying pressure has come back. It was important that today’s candle didn’t take out the lows of January 22nd around 90.05. Price came very close to the previous broken downtrend line from March and for the bulls price hasn’t closed below the light blue 50-day SMA. The RSI needs to hold above 45 support as indicated by the white horizontal line. If inflation out today beats expectations we could see yields move higher and the dollar catch a bid to resume its upward trend. We also have Jerome Powell speaking later and a US 10 Year bond auction.
GBPUSD – Cable cleared the all important 1.375 level and is now comfortably above 1.38 with 1.40 now as the next target for Cable bulls. The RSI is back up at previous resistance it has struggled to overcome in the past at 65, but is not severely overbought. Still looks ripe as a buy the dips pair with previous resistance at 1.375 and the pink 21-day EMA offering potential entry points. We have Governor Bailey speaking later.
EURUSD – The euro had broken below important support around 1.205 and the uptrend line from March, however, these levels have been reclaimed and now price sits around 1.211. Price is now a bit sluggish as it runs into some resistance around the light blue 50-day SMA and the RSI at 52. The next price hurdle for euro bulls is 1.217. News out of Germany showed lockdowns may be kept in place till the 15th of March. Over in Italy, it looks increasingly likely that Mario Draghi will become Prime Minister.
USDJPY – With the failure of US 10 year yields to clear the 1.2% level. USDJPY has pared back gains, but importantly is holding the 104.4 support level and the pink 21-day EMA. The small white uptrend line of the ascending channel has not been breached and the RSI has turned upwards. RSI support sits at 46.3. There was some news flow out that the BoJ’s March policy review may be used to clarify that there is more room to lower rates further.
Related articles
Ready to trade?
It's quick and easy to get started. Apply in minutes with our simple application process.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.