Thursday’s Forex Levels
Slow and steady is becoming the phrase that pays in the FX markets currently.Â
We continue to see higher levels for the dollar going forward, however, do not expect
it to happen within the next hour.Â The move higher last night was a positive development
technically and suggests that a move towards 89.36 is quite likely.Â In the interim,
with stochastics a bit overnought on the 60-min chart, expect some pull-backs towards
the 88.55-65 level where we expect another leg higher will develop.
GBP is proving to be a tough pair to break to the downside as the 1.8200 level simply will not break while the 1.8240 is containing upside pressure – range trading at its best.
We stick to our call for a lower GBP and as long as the dollar remains firm, GBP will eventually break.
Despite being stopped out of AUD on Tuesday, we are looking to re-establish a
short as downward momentum appears to be re-asserting during the London session.Â
We will be looking to sell into any rallies off the current oversold levels from .7730.Â
We see .7750 as a good level to re-establish shorts, our price target remains .7690 for now and we will adjust if needed.
Minor counter-trend rally from oversold levels should stall out at the .7100-.7110
level before beginning a new leg lower towards .7065 and .7030.
USD/NOK had gone into a trading range over the last several sessions
but now appears ready to begin trading well again.Â The current leg higher
is a bit extended and we would look to buy pull-backs towards the 6.5375 level, we will advise as prices unfold.
Open Position Update:
The short in NZD/USD has finally kicked in, helped no doubt by the poor Current Account Deficit numbers yesterday. We covered half of the trade at .7112 and now suggest tightening the stop loss to .7130.
We will advise on an exit price for the last half as prices unfold.
GBP/USD is a bit stubborn here at the 1.8200 level despite a firm dollar overnight. We will maintain our short as trades are taking time to develop in recent sessions.
As always, feel free to send me your comments and