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Friday, 23rd of February 2024 (European Market)

Slow start to proceedings for the major currencies

-There’s a slow start to proceedings in the forex market this morning with little to nothing to work with in terms of market leading headlines or catalyst today. PMI’s from yesterday saw EUR and GBP lose grounds against the Dollar extensively but there’s no follow through yet today.

-The US Dollar is little changed on the session with the USDIndex holding steady around 103.70 on the day. EURUSD is barely up about 17 pips today while GBPUSD and USDJPY are trading around the same bracket of about 28 pips on the day showing the state of the market.

-There’s a bank holiday in Japan today but let’s see what we have on the JPY pairs; CADJPY is up about 28 pips today, trading near highs from yesterday. EURJPY has just pushed about 163.00 on the day with price potentially setting sights at 163.500 while CHFJPY is up about 20 pips.

Commodities fails to sustain upside

-USOIL ran into resistance around $78.90 yesterday with price now trading around $78.00/bbl on the day. If price clears the support around this level, then we could potentially set sights at testing lows around $77.00/bbl.

-GOLD lost grounds yesterday as well with the US Dollar picking up pace with price dropping lower towards $2021, price retraced and is currently back trading around this same key level again today. If price clears this level, we could be looking at a test of $2015.

Sentiment and Cumulative Strength/Weakness

-Risk mood (sentiment) is tilting towards positivity in the market today although convictions are lower. Equities are holding on to highs on the day with the US500 trading at the highest level while Commodities are still trading mixed on the day.

-In FX, Australian Dollar leads the majors to the upside on the day while CHF and JPY lags the most on the day although not so much in the moves.

Cumulative Strength: AUD (0.21%)
Cumulative Weakness: CHF (-0.11%) & JPY (-0.11%)

-AUDJPY is up about 45 pips today but trading near resistance around 99.000 which could stall any further upsides while AUDCHF is up about 0.30% with price down to test support around 0.57830, if this level holds then buyers could be interested in further entry into the market.

-Looking ahead, it’s a relatively light session ahead of us on the economic calendar today which means current flows are expected to remain in place.

SELL AUDNZD
ENTRY 1.0770
SL 1.0880
TP 1.0750
TP 1.0720
TP 1.0670