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18/02/2014: Trading outlook for today

The lower than expected UK CPI will put downside pressure on Cable. The chart is now building up for a correction with yesterday’s shooting star candlestick and the weakness early today. A move back towards $1.6600 could easily be seen now. I am looking for the failure of any rally as a chance to sell now.

With the euro remaining firm against the dollar, this ties in with our outlook that EUR/GBP could be set to rally back towards £0.8280/£0.8300.

German ZEW Economic Sentiment is expected to sustain the rise to 61.7 and hitting this mark would further support the euro. In this case expect EUR/USD to challenge the $1.3739 resistance.

Dollar/Yen rally failed under the 102.83 key resistance and this is a concern for the dollar bulls. With what should be a dovish set of FOMC meeting minutes tomorrow, if the dollar cannot rally through 102.83 then the corrective pressure will be rising once more.

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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.