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19/02/2014: Trading outlook for today

EUR/USD has just begun to drift slowly backwards and this could take it back towards the band of support around $1.3723. I am increasingly positive about Euro/Dollar having made the break above $1.3739 and hourly momentum indicators in bullish configuration. I am wary of a corrective drift lower in the coming hours, but I am now looking for an opportunity to buy in the support band $1.3680/$1.3723.

GBP/USD is a tough call today as the meeting minutes add in a choppy element to the chart. The slight increase in UK unemployment to 7.2% (from 7.1%) and the dovish unanimous call of the Bank of England MPC on forward guidance suggests downside pressure could be seen. A sell signal could be a breach of support at $1.6653 and a move back towards $1.6603. I am thinking about a possible short position with the $1.6740 intraday resistance strengthened by this morning’s price action.

USD/JPY is a tough call as the pivot level around 102 yen is so important. The lower highs on the hourly chart suggest this support be tested but it is a difficult call with the near term outlook.

EUR/GBP has been helped higher this morning by the dovish BoE meeting minutes and higher UK unemployment but needs a move above £0.8253 to open the next resistance at £0.8280. I am going to continue to run my long position with good support now having built around the £0.8220 mark.

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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.