8DC FX Daily Update

February 25 2022

D1 EURUSD

EURUSD recovered well off its lows close to 1.1100, it managed to reach resistance at 1.1210/20. If this area can be broken the next target is 1.1260.

Alternatively, a failure to breach and hold 1.1220 would see selling pressure resume to test support at 1.1160/50.

D1 USDJPY

Despite its safe haven status, the JPY was not able to break strong support yesterday at 114.50, this failure saw a rebound above the 115.20 pivot to test resistance at 115.70/80.

If the USD can maintain its upside momentum to break 115.80, it will target the 116.30/40 high, last seen 2 weeks ago.

However a failure to break higher would see the dollar retrace its gains back to support at 115.20/10, and possibly below 115.00 again to 114.50.

D1 XAUUSD

Gold reacted as expected to the invasion of Ukraine by Russia and spiked to 1974. However, the already overbought yellow metal was unable to defy gravity, and has since crashed back to earth touching down at 1882.

This mornings attempt to break above resistance at 1914, seems to have been rejected and this could be a precursor of some more selling pressure to come.

Watch the pivot at 1914 if broken again, expect another attempt to test 1920 to follow, as gold bulls try to target 1928 resistance.

IF, 1914 is not broken then the selling pressure will increase with support seen at 1898 and then 1884 under threat.

D1 GBPUSD

Yesterday, cable broke down through the bottom of its recent 1.3460/1.3640 range.The subsequent collapse to 1.3280 and bounce back to 1.3400 was impressive.

If the GBP can maintain its upside momentum, it will attempt to break 1.3410/20 resistance. if successful this would set up a move to test 1.3460.

However, a failure to overcome 1.3420 would see renewed GBP weakness, and a return to support at 1.3340/30, which if broken could mean a drop to test 1.3280.

You can trade Forex, Metals, and Crypto at http://www.8dcglobal.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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