EURUSD first resistance at 1.1181/85 being

Daily Forecast - 16 February 2016

EURUSD Spot

EURUSD first resistance at 1.1181/85 being tested as I write but above here we meet stronger resistance at 1.1220/23 for profit taking on remaining longs. We should struggle here but further gains meet resistance at 1.1250/55 where we watch for a high for the day. Shorts need stops above 1.1280.

Failure to beat 1.1180/85 targets 1.1160 then good support at 1.1125/20. Again a good chance of a low for the day but be ready to sell a break below to target 1.1085/80 then an excellent buying opportunity at 1.1060/55.

USDJPY Spot

USDJPY holding above 114.25 now & could target resistance at 114.90/115.00. Shorts need stops above 115.20 but a break higher targets 115.45/50 then trend line resistance at 115.85/90.

First support at 114.25/20 but below 114.10 targets 113.85/80, perhaps as far as support at 113.55/50. Longs need stops below 113.20.

AUDUSD Spot

AUDUSD now above 7150 is more positive & targets trend line resistance at 7185/90. A high for the day is possible in short term overbought conditions but a break above 7200 targets 7220 then February highs at 7240/43.

First support at 7145/40 but below here 7120 is less positive & targets 7105 then support at 7088/83. A break below 7075 risks a retest of support at 7035.

EURGBP Spot

EURGBP breaking below 7710 today targets an excellent buying opportunity at 7685/80. Stop below 7665. A break lower however is a sell signal to target 7618/15.

First resistance at 7755/60 & the main challenge for bulls again today. Shorts need stops above 7775 with a break higher to target minor resistance at 7790/95 then minor again resistance at 7706/10.

Gold Spot

Gold unexpectedly broke support at 1211/10 & now the most important support of the day is definitely 1200/1198. You will remember what an important level this was last week as we shorted a few times & then bought the break above here. There is further strong support at 1190/89 & this is the last line of defense for bulls. A close below here is a sell sign for Wednesday. Further downside targets then are 1185 & 1180/79.

A recovery today targets 12006 then 1212, perhaps as far as strong short term resistance at 1217/18.

Eurostoxx March contract

EuroStoxx holding above 2820/25 keeps the outlook positive for today to re-target 2855 & quite strong resistance at 2865/70. A break above 2875 however keeps the short term outlook positive to target 2895 & resistance at 2910/13 but look for an excellent selling opportunity at 2925/29.

First support at 2825/20 but below 2810 risks a slide to support at 2785/81. If we continue lower look for the gap to fill at 2764/61.

Ftse March contract

FTSE above 5800 targets a selling opportunity at 5832/39. This is the most important resistance of the day but shorts need stops above 5865. A break higher sees 5835/30 act as support to target 5890/95.

We are overbought short term in a bear trend & failure to beat 5835 targets 5780 then 5765/60. We then meet support at 5723/19 before very strong support at 5690/85.

Dax March contract

Dax must hold above 9200 to build a further recovery. A break above 9260 is a buy signal today & targets minor resistance at 9310/20. A break above 9340 is more positive & targets 9430/40. Just be aware that the big resistance of the week lies in the 9530/70 band.

The 9210/50 band is tough resistance & failure here today targets good support at 9120/10. If we continue lower look for support at 9035/25. Longs need stops below the gap at 8990.