Today’s 9 February UOB Daily Forex Trade ideas, with gold reaching a three month high and greenback falling. Are we witnessing the commencement of a currency war? With populism on the rise, will nations around the globe look towards protectionism? Further pressure on the EUR?
AtoZForex – These are UOB forex trade ideas for 9 of February on the five major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
Summary of 9 February UOB Daily Forex Trade ideas
AUDUSD: Further upside move diminishing – Bullish bias
After AUD moved above 0.7600 last week, AUD bias shifted to bullish. However, AUD failed to punch through the 0.7700 ceiling and an extended consolidation, meant a loss in upward momentum. The outlook from yesterday remains unchanged. The bullish period which commenced last Friday may come to an end, unless the 0.7700 level can be breached in the next couple of days. UOB added,
“… Alternatively, a break below 0.7595 would also indicate that a short-term top is in place.”
EURUSD: Downward pressure to 1.0615 then maybe 1.0575 – Neutral bias
EUR yesterday bounced off the support level of 1.0638 rapidly. With the outlook remaining unchanged at neutral position, near term indication is a pullback from last week’s high at the 1.0825-30 level and current retracement from this high would mean a possible further move to the downside towards the 1.0615 level. A further extension to the 1.0575 is possible, at this stage unlikely. UOB added…
“…Resistance is at 1.0735 but only a move back above 1.0760 would indicate that the immediate downward pressure has eased.”
Also see: Daily Free Forex Signals
GBPUSD: Range bound 1.2350-1.2670 – Neutral bias
Very little to add as GBP traded in a narrow range of 1.2475-1.2550 yesterday. GBP rebounded from a low of 1.2347 after it broke through the 1.2400 level. The choppy trading indicates an unclear outlook at this moment. There is no clear indication of a sustained directional move. UOB added….
“…In other words, we continue to hold a neutral view and expect choppy consolidation within a 1.2350/1.2670 range.”
NZDUSD: Range bound 0.7220-0.7370 – Shift from Bullish to Neutral bias
After indicating the end of the NZD bullish phase yesterday. The bullish outlook has changed to neutral since the 0.7280 level was broken as price reached a low of 0.7277. This pair is range bound between 0.7220-0.7370 for now. The rapid downside move this morning has improved the downward momentum. A break below 0.7220 indicates a commencement of a deeper move towards the 0.7155-60 level. UOB added…
“…unless NZD can move and stay above 0.7330 within these couple of days. On a shorterterm note, 0.7280 is already a strong resistance. ”
USDJPY: Downside pressure to 111.30– Neutral bias (unchanged)
Provided the key resistance mentioned yesterday at 112.90 remains intact, near term bias remains on the downside towards 111.30 level. Overnight we saw price touch a low 111.61 level. UOB added,
“….. only a move back above 112.90 would indicate that a temporary low is in place.”
This concludes the 9 February UOB Daily Forex Trade ideas.
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