After Fed Chair Janet Yellen’s speech yesterday with a confidence not heard in a while about the USA economy, resulted in the greenback rising above the major currencies. Read 19 January UOB Daily Forex Trade ideas, as the ECB Governing Council meets today.
19 January AtoZForex – The ECB Governing Council meet today, what can the markets expect of the EUR after USD rallied after Fed Chair janet Yellen’s speech? These are UOB forex trade ideas for 19 of January on the five major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
Overview of 19 January UOB Daily Forex Trade ideas
AUDUSD: AUD strength decreasing – Bullish bias
Yesterday, AUD slid after touching a high of 0.7566, the 0.7580 level remains a strong barrier for a further move up. Bullish phase is still intact, even though the AUD momentum is waning. A clear break below 0.7445 would mean that the bullish phase has ended. UOB added,
“…Until then, despite the low odds, another attempt to move above 0.7580 cannot be ruled out just yet.”
EURUSD: Range bound between 1.0500 – 1.0715 – Neutral bias
EUR failed to extend higher as price dropped from the 1.0715 level. Underlying near term bias has shifted from positive to neutral, as pair is back in a trading range. UOB added…
“…In other words, we expect range trading for now, likely between 1.0500 and 1.0715.”
Also see: Daily Free Forex Signals
GBPUSD: Rebound to move further up to 1.2480 – Neutral bias
After the Tuesday rally, the pullback was not expected. Provided the 1.2240 level remains in place, GBP could extend higher to 1.2480 strong resistance level. UOB added,
“.. A move below 1.2240 would indicate that the immediate upward pressure has eased and the start of side way consolidation phase.”
NZDUSD: Increased risk of near term top – Bullish bias
Yesterday’s swing lower does not look good for the NZD. The swift descent increases the risk of a near term top, with confirmation only on a break of the 0.7095 level. UOB added…
“Such a move would not be surprising unless NZD can reclaim 0.7200 within these 1 to 2 days.”
USDJPY: Incorrect Bearish call – Shift from Bearish to Neutral bias
USD bounce could extend higher towards the 115.45-50 level. The bearish call was incorrect and out of sync, as USD recovered strongly, with a “bullish engulfing” pattern on the chart. The descending trend line will act as resistance near the 115.45-50 level. UOB added,
“…. In the next few days, only a move below 113.65 would indicate that the immediate upward pressure has eased.”
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