Euro, USDOLLAR at Behest of Recent Trends amid US Market Holiday
- GBPUSD could extend gains after correction to 1.5330/35.
- See the February Forex Seasonality report and the implications for the majors.
It's a market holiday in the United States so those traders not celebrating President's Day (I imagine there will be quite a few that aren't) might find themselves in a bit of a 'wanting' mood.
Unfortunately, on a day in which the Greek-Euro-Zone negotiations are set to conclude, illiquid markets probably play to a disadvantage for traders, as it means headlines, rumors, leaks, etc., will likely have a more profound impact on price action than they would otherwise under normal market conditions.
Nevertheless, FX markets, at least among the major trading instruments, are in noteworthy places relative to recent trends. In EURUSD, for example, the recent rally above $1.1440 may have marked the completion of a correction towards its daily 21-EMA, as traders look past the recent upswing in Euro-Zone macro data (currently the best since September 2013) and instead focus on the tail-risk of an existential crisis for the single currency.
See the above video for technical considerations in EURUSD, USDJPY, GBPUSD, and AUDUSD. Also remember to join me at 6:00 EST/11:00 GMT today for a special webinar on the Greek-Euro-Zone negotiations and their impact on the EUR-crosses.
--- Written by Christopher Vecchio, Currency Strategist
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