10/03/2014: Trading outlook for today

Not a huge amount of movement so far today. FX majors remain fairly flat against the dollar. Indices reflecting the risk averse session in Asia still, while gold and silver have also bounced.

EUR/USD has retreated to reverse earlier gains. The support at $1.3852 is increasingly important near term as a breach would begin the correction back into the $1.3775/$1.3825 support band. I think this move could be a feature of this week, but while the support at $1.3852 remains intact I am not calling it quite yet.

GBP/USD is under increasing pressure now. The support at $1.6638 has now been broken and this ruins the sequence of higher lows and puts pressure back on £1.6603. Intraday momentum indicators are weak and suggest that any rally back towards $1.6650 could come under pressure again.

USD/JPY, the breakout is strong but needs to reclaim the underside of the old intraday uptrend which is currently around 103.40 to defer the initial signs of a concern. Momentum is strong and on track to the recent high at 103.75. With the support band around 102.83 increasingly strong, corrections are now being bought into.

Gold, I continue to anticipate that increasing downside pressure will build up but there is support at $1328.86 that should come under pressure, with the bearish diverging momentum on the daily chart reflecting the waning upside momentum. While the price has rallied again towards the support at $1341.26, expect gold to be subsequently falling over as the downside pressure mounts.  I would look to use this latest bounce as a chance to take profit on long positions and possibly open shorts.

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