E Markets Stay Flat After FOMC Minutes

Daily Forex Market Preview, 18/02/2016

The FOMC meeting minutes released yesterday was dovish but the markets did not react much. At the time of writing, the US Dollar remains muted for the most part with most of the currency pairs trading flat with little to no reaction. The bias remains mixed across the board as prices post a strong consolidation.

EURUSD Daily Analysis

EURUSD (1.11): The Euro remains flat with the recent declines clearly showing signs of losing momentum. Price remains trading below the 1.12 resistance level but the previous two sessions have closed in a small bodied candlestick pattern with a relatively large range in comparison. Support at 1.113 remains intact with prices continuing to trade at this level over the past few sessions on the 4-hour chart which open the risk of a break below 1.11 – 1.113 support level. To the upside, 1.12275 is the first minor resistance level of interest which could see prices pull back to while a break below 1.1105 could signal a move to the next lower support at 1.095.

USDJPY Daily Analysis

USDJPY (113.8): USDJPY closed in a doji candlestick pattern yesterday following a bearish close on the previous session. A move to the downside could signal further declines but needs to be confirmed only by a decline below yesterday’s low of 113.377. Support at 113 comes into the picture with the hidden bearish divergence still in play. A break below 113 – 112.5 support could see USDJPY potentially test the previous lows but for the moment, it is likely that prices will stay flat above the 113 support.

GBPUSD Daily Analysis

GBPUSD (1.42): GBPUSD formed a doji candlestick pattern yesterday above 1.42 support. A daily close above or below the doji high or low is needed for further price action to unfold. The bias remains flat for the moment with prices trading near 1.43 support. A close below this support on the 4-hour chart could see a decline to 1.42 while to the upside price needs to trade above 1.435 to target 1.45 and eventually 1.4635.