Euro-dollar closed in New York

<p>EUR/USD Range: 1.2954-1.2985 Support: 1.2924Resistance: 1.2975 Euro-dollar closed in New York at 1.2965, the rate having extended its recent rally to 1.2972 through the US […]</p>

EUR/USD

Range: 1.2954-1.2985 Support: 1.2924Resistance: 1.2975
Euro-dollar closed in New York at 1.2965, the rate having extended its recent rally to 1.2972 through the US afternoon. The rate moved higher again into early Asia, pushing up to mark highs at 1.2973 before settling above 1.2954 through the balance of the session. Early European trade saw rates extend the topside again, moving up to 1.2980, but momentum again proving unconvincing. Talk of large 1.3000 strike options to roll off at today’s New York cut, could keep the rate contained today. Chinese New York holidays into next week should leave Asia trade fairly quiet. Support now looks at 1.2924, then 1.2873 and 1.2842 with resistance now at 1.2975, then 1.3006 followed by 1.3057.

 
GBP/USD
Range: 1.5481-1.5500 Support: 1.5480Resistance: 1.5520
Cable closed in New York at its range highs of 1.5490, with the rate holding gains into Asia, extending the topside to 1.5497 but strong resistance towards 1.5500 capped upside progress. The rate traded in the overnight session within a tight range of 1.5478-1.5497 . Euro-sterling consolidated its recovery gains between 0.8366-0.8376, with the early euro-dollar topside extension allowing it to extend to 0.8378. If cable clears above 1.5500, it is could meet further resistance between 1.5520-1.5523 with next line of offers potentially seen into 1.5550 ahead of another area of decent historical sell interest placed up towards 1.5580. Support is seen by traders in place between 1.5480-1.5470, then a deeper move towards 1.5450 ahead of 1.5435-1.5430. In the cross, traders see offers at 0.8380, and a break could move rates towards 0.8410. Stronger sell interest seen at 0.8420-0.8425. Support at 0.8330-0.8320.

Gold
Range:1,653.70-1,659.08 Support: 1,642.75Resistance: 1,670.25
Gold prices eased back marginally yesterday as some profit taking emerged after hitting the week’s highs of 1,670.25 in Europe. The metal opened in Asia at 1,660.00, building higher on some risk on sentiment ahead of Spanish and French bond auctions, where the market pre-empted the strong demand. Comments from ECB’s Mario Draghi and strong jobless claims data out of the US helped to keep the euro and risk sentiment positive, but this failed to stop some paring back of gold longs and the metal eased back to 1,649.32 from the highs before picking up into the close at 1,658.15. Asian markets last night have been steady ahead of the Chinese New Year celebrations beginning on Monday. Support is now seen towards 1,642.75 and 1,631.50 with resistance at yesterday’s highs of 1,670.25 and 1,678.25.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.