February 9th Morning Brief – 3 Things to Watch Today

Posted Thursday, February 9, 2017 by
Dave Green • 3 min read

Morning, fellow traders. Hope you enjoyed another good day full of profitable trades shared yesterday. The precious metal Gold remained an attraction for investors.

Let's recall the live market updates, "Another Bullish Wave in Gold", hits both take profits and helped us secure nearly 70 pips. That's Happiness!!

Well, you must be thrilled to begin a new trading day. So as always, let me share the insights of the forex market to help you in planning your trading day.

Today on Thursday, the investors are likely to focus on:

  • USD: Unemployment Claims
  • USD: FOMC Member Evans Speaks
  • GBP: BOE Gov Carney Speaks

Let me share my insights on the major currency pairs.

EUR/USD

Today, the EUR/USD is trading at $1.0689, losing -0.0009 points and -0.08% in the early Asian sessions after trading sideways in previous trading sessions with a slight gain of 17 pips in the opening price of 1.0681.  

Although, the Greenback weakened versus other major currencies on Wednesday, but losses remained limited as the ongoing political uncertainty in Europe and the ambitious policies of the U.S President Trump continued to weigh on the global markets. Distress over elections in the different parts of Europe, including the Germany, the Netherlands and perhaps Italy added to anxieties over political risk in the Eurozone.

EURUSD Chart

However, the EUR/USD is still maintaining a bearish momentum. As the chart represents that, it's still consolidating right above a double bottom area of $1.0642 while staying below a descending trendline at 1-hour time frame. Moreover, the Oscillator indicators, particularly, the RSI below 50 is also supporting a bearish tone in EUR/USD.

Basing the analysis, I would recommend you to keep your selling position below $1.0717, having placed a take profit at $1.0650 with a stop loss at  $1.07440.

USD/JPY

The safe haven currency, Japanese yen is also in focus of investors like Gold. At the movement, the USD/JPY trades at $112.15, adding +0.21 points and +0.19% in the early sessions. Previously, it fell to close the session putting more than two-month lows of 111.57.

USDJPY Chart

Besides that, the pair is following a narrow trading range of $112.550 – $111.600. We can see a spinning top candlestick formation below a major resistance of  $112.500, whereas a support prevails at $111. 65.

Well, from a trading point of view, having a sell position below $112.45 will be a good idea. But, make sure to place yours stops above this area aiming the target of $111.70. Further, the breakage of this level will push the USD/JPY pair deeper towards $111.350.

GBP/USD

Elsewhere, the GBP/USD continued its bullish momentum for the 2nd consecutive trading day. Currently, it's trading slightly bearish at $1.2518, falling around -0.0022 and -0.18%. The bullishness in the pair was supported by a weaker greenback due to the ongoing uncertainties in the U.S. Whereas, the parliamentary debate on a law giving Prime Minister Theresa May the right to trigger Brexit continued to weigh on a Sterling, a single currency.

GBPUSD Chart

Let's have a look at the technical side of a pair. Well, it's not really clear, and we cannot determine the long-term trend of the pair at the movement. As we can see the GBP/USD is consolidating on the 50 periods EMA, and the RSI value is holding at 51 and the formation of spinning tops and Doji candlesticks in the 4-Hour timeframe are leading towards a neutral sentiment of the investors.

I will recommend you guys to wait a bit and have a sell position once the market tests 61.8% Fibonacci area at 1.256. Whereas, at the movement a risky entry will be to have a buy at $1.2499, aiming $1.2560 along with stops at $1.2470.     

Happy Trading!!

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