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GBPUSD and EURUSD surging higher

gbpusd chart

  • A more aggressively negative, broad based US Dollar theme continues to develop through January, versus most G10 and also Emerging Market FX rates.
  • Although the anticipation is for 3 further rate hikes from the Fed in 2018, the growing expectation of a global growth and recovery outlook for 2018, has encouraged the outperformance of other major economy currencies.
  • GBPUSD has this week seen an aggressive push above the psychological/ option barrier at 1.4000 to now 1.4465 and 1.4600 into mid Q1.
  • The recent EURUSD surge this week has reinforced the intermediate-term bullish trend, with a 1.2272 target now hit, the threat is now to 1.2600 into later January/ February.

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GBPUSD Bullish trend fully re-energized

An extremely aggressive surge higher om Wednesday to yet another new multi-month and post-Brexit high through multiple resistance targets, to keeps risks higher Thursday.

The prior break above 1.3549 shifted the intermediate-term outlook from neutral to bullish and sees upside risks for January.

For Today:

  • We see an upside bias for 1.4305 and 1.4307; above targets 1.4388 and maybe a key level at 1.4465.
  • But below 1.4244 aims for 1.4185 and risks a setback to 1.4142, which we would look to try to hold.

Intermediate-term Outlook – Upside Risks:

  • We see a positive tone with the bullish threat back up to target 1.4465 and 1.4600.

What Changes This? Below 1.3730 signals a neutral tone, only shifting negative below 1.3456.

Resistance and Support:

1.4305/07 1.4388 1.4465*** 1.4500 1.4541
1.4244 1.4185* 1.4142 1.4073 1.4018**

4 Hour GBPUSD Chart

gbpusd chart

 

EURUSD Bull theme re-energizing and aiming higher

A strong rally on Wednesday to another new bull move high through resistance level at 1.2355 and 1.2412, as expected building on Tuesday’s solid rebound effort from above 1.2194 support (using 1.2233 as a platform), keeping risks higher Thursday.

The end of 2017 push through 1.1961 saw an intermediate-term bullish shift to set an upside bias for January.

For Today:

  • We see an upside bias through 1.2457, maybe psychological/ option target at 1.2500 and 1.2547.
  • But below 1.2383 quickly aims at 1.2354 and opens risks to 1.2301, maybe 1.2269.

Intermediate-term Outlook – Upside Risks:

  • Whilst above 1.1914, we see a positive tone with the bullish threat up to 1.2600, maybe towards 1.3000.

What Changes This? Below 1.1914 signals a neutral tone, only shifting negative below 1.1815.

Resistance and Support:

1.2457 1.2500 1.2547 1.2600** 1.2646
1.2383 1.2354 1.2301* 1.2269 1.2233**

4 Hour EURUSD Chart

eurusd chart

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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