EURUSD intra-day analysis
EURUSD (1.0578): EURUSD posted a fresh 1-month low yesterday breaking down below the round number support of 1.0600. The declines came as the Fed Chair Janet Yellen signaled the Fed’s intent to pursue policy tightening. Following the break down below 1.0600 support, EURUSD is likely to drift towards 1.0555 where the next support is seen, albeit some pull back ahead of this decline will see prices retesting 1.0600 support to establish resistance. The single currency failed to post any gains despite data from Germany showing that Europe’s largest economy was powering ahead at full steam after registering at 1.9% annual GDP growth rate in 2016.
GBPUSD intra-day analysis
GBPUSD (1.2463): GBPUSD formed a bearish engulfing pattern yesterday as data from the Office for National Statistics showed that consumer increased less than expected at a pace of 1.8%. Economists expected to see CPI rise 1.9% instead. The British pound came under pressure with a stronger US dollar, closing the day at $1.2468. Price action continues to trade rather flat with $1.2400 support remaining in sight. The monthly jobs report from the UK will be the main event risk for today with traders likely to focus on the wage growth which is expected to show a headline print of 2.8%.
USDJPY intra-day analysis
USDJPY (114.38): USDJPY is pushing ahead after what looks to be a break above 114.00 resistance level yesterday. Further upside will see the dollar targeting the unfilled gap from 27 January at 115.10. However, the daily Stochastics is showing a hidden bearish divergence, and this makes it essential for USDJPY to post a daily close above 114.00 to ascertain further gains. Failure to do so could signal near term weakness in USDJPY which could push prices back towards 113.00 – 112.50 support level which is pending a retest.
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