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Gold creates a fresh high on new COVID-2019 scare. EUR/USD, GBP/USD, USD/JPY

Feb 25 2020, 03:57 PM (BDT) | OlympTrade.com

There is a fresh wave of uncertainty surrounding the coronavirus outbreak. Although the virus is for the most part contained within China there are new cases being reported in surrounding countries. The worse outbreak is in South Korea where cases have risen to over 200 which doubled within 24 hours mainly from a religious sect in Daegu. There is concern that people who have tested negative and then traveled elsewhere were later confirmed to have been infected and therefore global measure remain to curb the spread of the COVID-2019. Gold has risen to a high of 1642.50.

EUR/USD on a Daily TF almost completely closed the GAP from 2017 when the price dropped to 1.07779. The pair remained in oversold area for about 7 days and the price is now trying to return to its normal trading range and is trading around 1.08095.

Eurozone Manufacturing and Services PMI came slightly above forecast today, with Manufacturing PMI rising to 49.1, above 47.5 forecast and Services PMI rose to 52.8. Eurozone CPI was in line with the forecast YoY for Jan. at 1.4%.

The price is consolidating around 1.08. MACD bearish histogram has decreased and Parabolic SAR is still above the price but nearing.

Resistance: R1 1.08374, R2 13 EMA 1.08666, R3 1.09.

Support: 1.07775, S2 1.07400, S3 1.07.

GBP/USD on a Daily TF is working very well with our set targets. On Wednesday the price dropped to the 200EMA on a strong greenback and today the price used 1.29500 as resistance. The price is currently trading around 1.29288. United Kingdom PMIs were released today, with Composite and Manufacturing above forecast at 53.3 and 51.9 respectively. Services PMI was just a tad below forecast at 53.3.

Technically: The price dipped below key support and now using 1.29500 as resistance. 13EMA is pointing down in the same vicinity.

Resistance: R1 1.29880, R2 1.30500, R3 1.31.

Support: S1 200 EMA 1.28483, S2 1.27685, S3 1.27.

USD/JPY on a Daily TF reached and the surpassed all of our resistance targets, the pair is currently trading around 111.922 after making a high of 112.224. The Japanese Yen is considered to be a safe haven asset but is in a neighboring country with China and today Japans Services PMI took a dip down to 46.7 from 51.0 previously. The asset is currently overbought with RSI at 73.24.

Resistance: R1 112.610, R2 113.

Support: S1 111.500, S2 111.112, S3 110.717. 

 

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