Tuesday 21 February UOB Daily Forex Trade ideas, US Dollar index gaining strength this month, we can expect USD bullish against all majors. Later today we will have RBA Governor Lowe speaking at the Australia-Canada Economic Leadership Forum, in Sydney. AUD bearish?
AtoZForex – These are UOB forex trade ideas for 21 February on the five major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
Summary of 21 February UOB Daily Forex Trade ideas
AUDUSD: Take half profit at 0.7775-80 – Bullish bias (unchanged)
With US markets closed yesterday, AUD upside drive has waned further as it traded in a tight range between 0.7660-0.7690 levels. Only a break above the 0.7640 indicates a temporary top in place, until then we could see a possible further to the upside to the 0.7775-80 level, for banking profits. UOB added,
“… even though this level is quickly slipping out of reach unless AUD can move and stay above 0.7710 within these 1 to 2 days.”
EURUSD: Range bound 1.0580-1.0750 – Neutral bias (unchanged)
The weak daily close by the EUR last Friday near the low of the day, indicates a short term bias to the downside. The overall outlook continues to remain neutral. A move below the low the trading range would not be at all surprising, however, the EUR would struggle to move below last week’s low of 1.0520 level. Only a clear and clean break below the 1.0520 would see a downward move to the 1.0400 level. UOB added…
“…Resistance is at 1.0640 but the key level to monitor for the next several days is at 1.0670 (stabilization only above this level).”
Also see: Daily Free Forex Signals
GBPUSD: Possible break lower, tentative signs – Neutral bias (unchanged)
GBP downside pressure is expected to increase unless the near term resistance of 1.2350 re claimed, as we saw the pair touch an overnight high of 1.2482 level. The pair has to break below the 1.2350 with a likely move to the 1.2250 level. UOB added….
“…To put it another way, we continue to see early and tentative signs that the recent prolonged consolidation could be resolved with a downside ‘break’.”
NZDUSD: Range bound 0.7150-0.7320 – Neutral bias (unchanged)
As mentioned yesterday NZD near term bias has shifted to the downside. A possible move below the trading range of 0.7150-0.7320 zone would not come as a surprise. The 0.7135 low seen last week could be tested with a deeper move to the downside. UOB added…
“….Only a move back above 0.7220 would indicate that the immediate downward pressure has eased.”
USDJPY: Range bound 112.30-114.50 – Neutral bias (outlook unchanged)
USD closed higher yesterday after three consecutive down days. However, current price action is still viewed as part the sideways range of 112.30-114.50 levels. UOB added,
“….. based on the current indicators, this range is expected to be intact for a while yet..”
This concludes the 21 February UOB Daily Forex Trade ideas.
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