Forex Brokers Award 2021
Vote your favourite broker

DXY trades higher in overbought, USD/JPY breakout of 110.00 resistance. EUR/USD, GBP/USD, USD/JPY

Feb 21 2020, 07:44 PM (BDT) |

U.S. Dollar Index continues to trade higher. DXY is oversold – RSI 75.93. The move up is consistent with upbeat U.S. data, the latest release was yesterdays NY Empire State Manufacturing Index for February, which rose to 12.90 – well above the 5.00 forecast and 4.80 previous fact. USD is also considered to be a safe haven asset during economic uncertainty like the current situation with the coronavirus.

Safe haven Gold is trading at January highs around 1609.277 per troy ounce. Investors are antsy while waiting to see the full impact of the coronavirus on global economy and turning to Gold for security.   

The strong greenback pushed EUR/USD to its lowest level since 2017.

EUR/USD on a Daily TF tried to close the gap from 2017 but reversed after dropping to 1.07856. Currently the price is trading slightly below 1.08. Just like the DXY is overbought, EUR/USD is oversold -  RSI 21.21.

Today we are going to be focused on U.S. data releases and speeches from FOMC members before the release of FOMC meeting minutes at 9pm GMT. Upbeat data and optimistic hawkish tones from the Federal Reserve would bring EUR/USD lower, while dovish statements and weak data would bring a correction to this almost 2-week downtrend rally.

Resistance: R1 1.08580, R2 1.09, R3 1.09400.

Support:  S1 1.07775, S2 1.07400, S3 1.07.

GBP/USD on a Daily TF continues to trade in a flat around 1.30. The price is consolidating around a trend line down from 2014. The price has been above the trend line using it as support since the breakout on Feb.13th. There has been upbeat data coming from the U.K. Yesterday we had upbeat employment data, Claimant Count Change in January was 5.5K, well below the 22.6K forecast and Employment in December increased by 180K above 145K forecast. Today, annualized CPI for January was also released at 1.8% above 1.6% forecast.

Resistance: R1 1.30500, R2 1.31, R3 50% Fibo 1.31693.  

Support: S1 1.29500, S2 38.2% Fibo 1.28835, S3 200EMA 1.28478.

USD/JPY on a Daily TF had a breakout of 110.00 resistance. We surpassed our first resistance target and reached resistance around 110.450. Both currencies remain strong.

Resistance: R1 110.717, R2 111.00, R3 111.350

Support: S1 110.214 – 110.00, S2 109.515, S3 109.270.

Olymp Trade is a reliable broker, a member of the Financial Commission of A category. This is proof of the high quality of our services and guarantees each trader deposit insurance, comprehensive support and prompt resolution of all issues.