Video

John J Hardy
Saxo Bank’s head of FX strategy John Hardy takes a closer look at trends and moves in today’s forex charts, including EURUSD, USDJPY, AUDUSD, and EURSEK.
Article / 28 February 2018 at 15:40 GMT

FX Board: USD feels out post-Powell resistance — #SaxoStrats

Head of FX Strategy / Saxo Bank
Denmark
  • EURUSD just below key range support
  • Cable hit by sterling plunge, dollar rally
  • 'AUDUSD is at pivotal levels'

By John J Hardy

Please see today's FX Board PDF attached to this post for the latest Notes of Interest, Trend and Trend Heat readings, as well as a few thoughts on key chart developments below.

Charts: EURUSD

EURUSD has teased the key range support near 1.2200 and is trading just below it as of this writing; the next major zone of interest lower is the former high on the way up around 1.2095. This weekend's Italian election looks like the next sentiment test for the euro, which needs to pick up a bid well ahead of 1.2000 to avoid facing a more major challenge to the longer term uptrend. 

It wouldn't take much to reassure bears here... a smart reversal of this break attempt, for example, given the chart structure.

eurusd
Source: Saxo Bank 

EURJPY (weekly)

EURJPY has broken down below range lows and the 200-day moving average, possibly opening up for considerable progression lower if the move holds. The weekly Ichimoku rises toward the 127.50-plus area over the next couple of weeks and could be a bearish target.

eurjpy
Source: Saxo Bank  

GBPUSD

Cable is in a steep retreat in the wake of fresh Brexit uncertainties hitting sterling just as the greenback is also posting notable strength. The plunge through the 1.3855 area local pivot has taken the action lower (note the 200-day moving average in GBPJPY giving way as this was written as a possible accelerant). 

The more major challenge to the trend is not until the 1.3600-50 zone, the major resistance level on the way up.

gbpusd
Source: Saxo Bank 

AUDUSD

AUDUSD is at pivotal levels with a break of 0.77500-75 the downside blow needed to set a more bearish outlook in motion. Failing that, the range is the range.

audusd
Source: Saxo Bank

— Edited by Michael McKenna

John J Hardy is head of FX strategy at Saxo Bank  
Download document

FX Board for Wednesday, February 28, 2018

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