25/02/2014: Trading outlook for today

The Dollar is under a little bit of renewed pressure in the last day or so. Both the Euro and Sterling are making gains and the gold price has broken out again. The fx majors are having a strong performance against the dollar today.

EUR/USD remains stuck between $1.3700 and the resistance at $1.3775. The run higher towards the resistance has just lost some upside impetus this morning and could begin to drift lower, hence why I decided to close my long position. If this correction is seen towards $1.3700, I will be looking to re-enter for another long position.

GBP/USD continues to push higher and trading above yesterday’s high suggests the Sterling bulls are looking to regain overall control again. The support around the 38.2% Fib retracement at $1.6603 continues to do a good supportive job. I am now looking to buy into any weakness on Cable. This afternoon we have the Case-Shiller index at 2pm and Confidence at 3pm (both GMT) which could give me a spike lower and a chance to buy again.

USD/JPY is stuck mid range between 102 and 102.83 and shows little inclination for a breakout. I may dip my toe in the water with a long position around 102.20 support but Dollar/Yen is increasingly range bound and tough to call.

Gold has broken out above $1332.10 and today’s consolidation is helping to unwind any overbought momentum. I expect further upside and there is decent support around $1328 which would be a good chance to buy it there is a dip.

Indices are in correction mode today, which is unwinding some overbought momentum near term. However there is good support around 6800 on FTSE 100, while any buy signal around support at 9600 could also be used as a chance to buy the DAX.

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