Morning technical analysis – 14 February 2014 | Alpari Newsroom …
Morning technical analysis – 14 February 2014
February 14, 2014
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EURUSD
The euro is continuing its push higher this morning but as with the Tuesday and yesterday, the pair is running into strong resistance around 1.37. This happens to coincide roughly with the 50 fib level, 27 December highs to 3 February lows, which the pair has failed to close above this week. Therefore, as it stands, with the pair also failing to break above the 1.3739 highs, set on 24 January, I must remain bearish, even though there has been a clear bullish bias since the start of this month. If we see those previous highs, which coincide with the 61.8 fib level, broken, then things would look much more bullish, with further resistance then being found around 1.38 and 1.3850, descending trend line which dates back to July 2008. If not, then a break below the most recent low of 1.3561 would confirm the continuation of the longer downtrend.
GBPUSD
Sterling is looking increasingly bullish this morning having broken above yesterday’s highs before finding resistance around 1.67. Should we see a break above here, the next target will be 1.6753, the 61.8% expansion of the move from the recent retracement, which roughly coincides with the April 2011 highs. A break above here will be a clear indication that the market remains very bullish on the pair and could open up a move towards 1.70 for the first time since August 2009.
USDJPY
We’re seeing what appears to be a minor correction in the recent dollar rally over the last couple of days. Should the pair break below the previous lows of 100.75, it would suggest this is not a correction at all, rather a continuation of the downtrend seen this year. However, this doesn’t appear to be the case, with the pair finding strong support around the key fib levels, 50 and 61.8. If the pair rallies from here it would be the first clear signal that this year’s downtrend is over. Confirmation would then come if the pair close above previous highs of 103.44, thereby making higher highs and higher lows, an indication of a new uptrend.
Author: Craig Erlam
Tagged EUR/USD, foreign exchange trading, forex, forex uk, FX, GBP/USD, Metatrader 4, MT4, MT5, Technical analysis, USD/JPY
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Morning technical analysis – 14 February 2014 | Alpari Newsroom …
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