Daily Forex News

Although the single currency resumed recent decline to an intra-day low of 1.3532 on risk aversion and partly due to the rate hike by PBOC, loss of downward momentum should prevent sharp fall below 1.3484-1.3500 (61.8% Fibonacci retracement of medium term upmove from 1.2457 to 1.5145 and a level where…

Although the greenback has retreated after intra-day brief rise to 90.43 and consolidation with mild downside bias would be seen, a firm break of minor support at 89.58 is needed to signal top has possibly been formed and bring further fall to next support at 89.25. Once this level is…

USD/JPY’s choppy recovery from 88.57 could still continue but after all, we’d expect upside to be limited below 91.26 resistance and bring fall resumption. Below 89.56 minor support will flip intraday bias back to the downside and bring fall resumption towards 87.36 support first. Break will confirm that whole rise…

Intraday bias in GBP/USD remains neutral and consolidations from 1.5534 might still continue. Another rise cannot be ruled out but after all, upside is expected to be limited by 1.5849 resistance and bring another fall. Break of 1.5534 will confirm fall resumption for 100% projection of 1.6875 to 1.5829 from…

USD/CHF’s break of 1.0793 confirms that recent rally has resumed. Intraday bias remains on the upside and further rise should now be seen to medium term trend line resistance at 1.0921 next. On the downside, below 1.0704 minor support will turn intraday bias neutral again. But short term outlook will…

EUR/USD’s break of 1.3585 confirms that recent down trend has resumed. Intraday bias remains on the downside and further decline should be seen to 61.8% retracement of 1.2329 to 1.5143 at 1.3404 next. On the upside, above 1.3695 minor resistance will turn intraday bias neutral but short term outlook will…

Dollar rises today on risk aversion as China raised bank reserve requirement for the second time in a month to cool lending. PBoC announced to increase bank’s reserve ratio by by +50 bps effective February 25. This is the second time this year the central bank raised banks’ reserve ratios…

Although yesterday’s retreat after faltering below resistance 124.28 suggests consolidation would be seen, as long as 121.62/66 holds, prospect of another corrective rise remains but break of resistance at 124.28 is needed to signal low has been formed and bring retracement of recent decline to 125.00.

Although the Australian dollar rose to 0.8921 yesterday and stronger retracement of recent decline cannot be ruled out, however, upside should be limited to 0.9012 (61.8% Fibonacci retracement of 0.9280-0.8578), and bring retreat later today or early next week.

The single currency fell as expected to our indicated downside target at 121.00, however, the rebound from 120.70 suggests a temporary low is possibly formed and consolidation with mild upside bias is seen but a daily close above 124.28 is needed to bring stronger rebound towards 124.95/00 and then 126.00.