- AxiTrader - : FX Technical Outlook

FX Technical Outlook - Thursday 26th January

Posted By :- AxiTrader - on:26/01/2012 10:04:00 AM

EUR/USD

The Euro had a wild ride today, falling initially to 1.2928 on a bunch of negative
comments from the Economic Forum in Davos and then soaring later as the Fed
slashed their global growth forecast and pledged to keep rates low until late
2014, much longer than previously forecast. Their dovish outlook has caused
the Euro to reach as high as 1.3121 so far, easily taking out the previous
resistance at 1.3060 in the process.

Technically we are heading rapidly towards the top of the channel where
resistance lies at 1.3140. Should we break through here the next target is
1.3198 (21 Dec high) and then 1.3240 (23.6% of1.4242/1.2623).

Short term support now comes in at 1.3060 – the previous resistance. Below
here, look to 1.3000 and then the 1.2950 rising trendline, to provide a base.
While the 4 hour charts are overbought and likely to limit the immediate
upside, the dailies are pointing to higher ground in the sessions to come.
Asia will be more or less dead today we will need to wait for Europe to open
before seeing anything worthwhile. German Consumer Confidence and then US
Jobless, Durable Goods and Home Sales claims will provide the economic
highlights and there is the jolly-up in Davos that may provide some
entertainment.

AUD/USD

Happy Australia Day! The Aud likes it anyway, making a 3 month high, following
the Feds move on rates, keeping them at current levels til late 2014.
Having soared from 1.0445 through the 1.0570 resistance it now sits above
1.0600 and looks as though it is headed towards the top of the channel
currently at 1.0693.

It looks as though it could be very choppy in sessions to come and solid buying
interest will continue to be seen on dips. There is divergence appearing on the 4
hour charts though, so be wary of setbacks. For the time being use
1.0550/1.0650 as a guide.

Aud/Jpy continues to look good, trading up to 82.46. It should consolidate now,
but the next target is at 83.15. Support at 81.80.

With Australia closed it is going to be dead in Asia today so we need to wait for
Europe/US to get any real direction.

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