Summary:
- The euro clawed back above 1.23 on the neutral to slightly hawkish tone to ECB minutes released at Thursday night.
- Today’s key data to watch include the final figure for annualized Q4 GDP in Germany and EU January CPI, Canada January CPI YoY and MoM as well .
The euro clawed back above 1.23 on the neutral to slightly hawkish tone to ECB accounts released at Thursday night (22 February). Several members dropped their prone to dovish and expressed their supports to quit the central bank’s quantitative easing policy.
Technical
The dollar index (DXY) showed signs of resumption of rally early this morning after a corrective down move on the 1 hour char where the price action broke below its EMA60 while its short term moving averages entered sharply into, though have not crossed below its short term moving averages yet. Whether or not the trend on this time frame could change sill remains to be seen.
As to non-USD currencies, the euro turned choppy in late New York session after rebounding to its H4-period EMA30 with modestly stiff upside resistances. Look a the potential down move and its speed. The British pound continued to whipsaw after breaking above its H1-period trend resistance, a risk of push-backs in he short term. The Aussie dollar fell back again after reacting off H1-period trend resistance. Look at the potential changes in the downside momentum.
Switching gears to precious metals, the gold extended its rally and broke above its H1-period EMA60. However, its short term moving averages turned convergent again below its long term moving averages, could potentially stage a choppy move going forward. A limited downside momentum could help the yellow metal rebound and create a new high from last night.
Disclaimer: The views and opinions expressed in this article are those of the authors and for the purpose of reference only, and shall not be relied upon by investors in making any trading decisions.