Forex trading headlines 24 February 2014

Funnily enough I watched Star Trek last night and then watched the USS S&P seek out new worlds and civilisations as it broke above stubborn resistance at 1850. It managed to add seven odd ticks tot he record books before losing steam late into the US session and is in danger of closing back below the 1850 level.

USD/JPY was once again looking for inspiration from elsewhere and the rise in stocks and bonds gave it just that. It went for it’s own breakout from the short term wedge but ran into willing sellers at another stubborn level at 102.60. Not even the S7P continuing to the high, nor bonds nearing 2.80%, nor Nikkei futures rising 200 ticks could drag it further up and the range is still defined.

The moves in the US markets filtered through to some dollar strength and a continuation of deflation inspired selling in EUR/USD saw the pair head towards 1.3700 from a lofty 1.3740. As per usual though it didn’t last long and we recovered from the 1.3709 low to finish at 1.3732. The seeds may have been sewn for the next ECB meeting but the Euro isn’t going down without a fight.

GBP/USD had survived an attempt on 1.66 earlier in the day but could do nothing amid the dollar spurt and we broke down to 1.6584. Again the pound came out fighting and we managed a substantial recovery to 1.6670 before settling back to 1.6655

AUD/USD needs no excuse to make a run higher these days and has been shopping at the same teflon shop as the euro it seems. Resistance at 0.9020 was taken out as it went on a march through the 0.90 level and we came to a stop just into the next batch at 0.9045/50. Still in range, like so many other pairs, the big level at 0.9085 needs a good talking to or we live in danger of falling back again

USD/CAD managed a break of support at 1.1060 but spec and corporate buyer mopped up the dip to 1.1055 and we finish up clinging on to the level once more

Over now to our intrepid reporter from down under who is poised on the edge of his seat to bring you the result of Italian PM Matteo Renzi’s first confidence vote at around 23.00 gmt.