26/02/2014: Trading outlook for today

These forex pairs are becoming increasingly rangebound with technical indicators increasingly neutral. This makes it harder to call on an intraday basis. Despite this the relative performance of the fx majors versus the dollar is showing that both Sterling and the Euro are on an improving trajectory once more, so we sit on the bullish side of the breakout.

EUR/USD looks to use the rising 200 hour moving average (currently $1.3728) as the basis of support with the rate being increasingly squeezed under $1.3773 resistance. I am therefore looking to use corrections as a chance to buy, as I did yesterday. Any move into the $1.3700/$1.3725 support area could be used as a chance to buy for near term positions towards the highs again.

GBP/USD is now looking to form a series of higher lows on an intraday basis. The support comes in at $1.6660 around the level of the rising 89 hour moving average which had been the basis of resistance and is now support and this is an area I am now looking to buy. I am expecting upside pressure on $1.6725 resistance band. Volume indicators suggest support is coming in for Cable now.

USD/JPY is being squeezed in between the intraday uptrend which comes in currently around 102.00 (which currently coincides with the 102.00 pivot level) and the resistance of a two day downtrend. I am staying long of my position which had an entry at 102.097 however the rate needs a push above 102.38 to re-open the upside once more.

Gold is just consolidating the breakout again. There is support around $1338 and I will be viewing any correction which finds support above $1330 as a chance to buy for $1350.

Indices are again in a corrective mood, but there are some support bands that are holding up the correction.  FTSE 100 is looking to use a band around 6800, the DAX is using 9600, with the S&P 500 looking to use the band between 1835/1840.

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