Live Chat

13/03/2014: Trading outlook for today


There has been an incredibly positive move today in forex majors as investors move away from the US dollar to push pairs strongly higher. This move has not been reflected in equities which remain subdued. Gold has also been strong today.

EUR/USD had the significant turn higher yesterday morning and has barely looked back since. The push above $1.3915 resistance re-opened the psychological $1.400 level once more. Intraday RSI is slightly stretched over 70 so perhaps it would be best to wait for the rate to unwind a little before buying. An ideal entry point would be the support around $1.3915. The outlook for the daily chart looks very strong.

GBP/USD has today rallied strongly. A move above $1.6681 resistance now suggests that the bulls have fought back and are ready once more to support. However the immediate resistance around $1.6740 could halt the immediate upside. However a pullback into the support band $1.6670/$1.6690 could be a chance to buy.

USD/JPY has spent the morning unwinding gradually back towards the resistance around band 102.60/102.85. This is still a weakening outlook and any move towards 102.83 which looks to now be a key pivot level intraday could be a chance to sell. The intraday top pattern implies 102.20 at least.

EUR/GBP has pulled back to the support band at £0.8350 which could now be a chance to buy. This is the neckline of the reversal pattern which suggests upside towards a test of £0.8466. A chance to buy.

Gold as I mentioned in the Morning Report video has struggled with 3 attempts to breach $1375 but failed. The intraday waning MACD, RSI and Stochastics suggest a correction now on an intraday basis. Th reaction low at $1364.54 protects a retreat back towards the key support around $1354.80. I would avoid continuing to chase gold higher now whilst this corrective scenario plays out.

DAX and FTSE 100 have done very little today. DAX has almost spent the entire morning trading sideways, while the FTSE has been under a bit more pressure. Both indices have still got corrective outlooks and rallies are being sold into. The resistance band on DAX is between 9285/9359. The reaction high at 6651 is resistance on FTSE 100.

 


Ready to start trading?

Open an Account Try Demo

  • Archive

  • Topics

  • Videos