End the week with 3 February UOB Daily Forex Trade ideas, ahead of USA Non Farm Payroll data later today. With disappointing Chinese Manufacturing PMI, how will markets respond to UK Service PMI. NFP expected to show a strong labour market. Bullish USD?
AtoZForex – These are UOB forex trade ideas for 3 of February on the four major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
Summary of 3 February UOB Daily Forex Trade ideas
AUDUSD: Anticipated break above 0.7700 – Shift from Neutral to Bullish bias
The AUD closed above 0.7630 with ease yesterday at 0.7660 level, indicating the commencement of a move towards 0.7700 descending trend line. The rapid move to a high of 0.7696 suggests a further upward move is likely in the near term. A break above 0.7700 is anticipated with focus on the 0.7775-80 levels. UOB added,
“… a move below 0.7560 would indicate that our bullish view is wrong even though on a shorter-term note, 0.7620/25 is already a strong support (those looking to turn long may consider buying near these levels).”
EURUSD: Bullish on daily close above 1.0840 – Neutral bias
EUR after touching a high of 1.0828, the EUR retracted. For a bullish leg to start, the daily close has to be above 1.0840. The possibility of such a move is still intact, however, the odds have diminished a lot. UOB added…
“…a clear break below 1.0730 would indicate that the positive undertone has eased and this pair is then likely to trade sideways within a broad range.”
Also see: Daily Free Forex Signals
GBPUSD: Range bound 1.2400-1.2730 – Neutral bias
GBP touched the high of 1.2706 yesterday near top end of the trading range 1.2400-1.2730. After the rapid retraction of price, the outlook from here is further sideways trading in the range already mentioned. UOB added,
“…but the ‘bearish outside day’ yesterday suggests that the downside is more vulnerable (even though 1.2400 is expected to offer solid support).”
NZDUSD: NZD strength diminishing – Bullish bias
NZD upside momentum still remains sluggish for the time being. Only a clear break above the 0.7350 level would indicate a higher move upward. With the sharp pull back from the high of 0.7338 indicate weakened NZD strength to the upside. UOB added…
“…That said, the bullish outlook is deemed as intact until 0.7240 is taken out.”
USDJPY: Bearish if daily close below 112.50– Neutral bias
USD rebounded from the retested lows of 112.00-05 observed earlier this week to close the day at 112.80. Yesterday’s outlook remains intact, that if a daily close below 112.50 would indicate a possible move to the 111.30 level has begun. UOB added,
“….The odds for such a move have eased somewhat but as long as 113.95 is not taken out, it cannot be ruled out just yet.”
This concludes the 3 February UOB Daily Forex Trade ideas.
Think we missed something? Let us know in the comments section below.