No Stopping US Dollar, Euro Nosedives Below 1.1100

Key Highlights

• US dollar rocketed higher against almost all major currencies, and Euro remained one of the worst performers as it broke the 1.1100 support area to create a new low.

• Japanese Securities investment representing bonds issued in a domestic market by a foreign entity in the domestic market’s currency was released by Ministry of Finance, which registered a reading of ¥470.9B, compared to the last reading of ¥166.3B.

• Japanese Foreign investment in Japan stocks was also released around the same time, which came in at ¥470.9B, compared to the last reading of ¥289B.

• Australian Retail Sales released by the Australian Bureau of Statistics registered a reading of 0.4% in January 2015, compared to the preceding month in which it gained by 0.2%.

• Australian trade balance released by the Australian Bureau of Statistics registered a trade deficit of -980M in January 2015, compared to the last deficit of 436M, and expectation was of -950M.

• Australian Exports of goods and services came in at 1%, and imports posted a reading of 3%.

• Very strong selling pressure was witnessed in the EURUSD pair recently, which got momentum when the pair broke the 1.1120 support area.

NZDCHF

The New Zealand dollar was the only currency performed better against the US dollar. It was also seen trading higher against the Swiss franc. However, the NZDCHF pair is testing an important resistance area in the form of the 100-day simple moving average. The mentioned MA is also around the 61.8% fib retracement level of the last leg from the 0.7958 high to 0.6100 low. So, we need to see how the pair trades in the near term and whether it can break the 100 MA or not. The next hurdle in that situation is around the 200-day SMA.

Intraday Support Level – 0.7200

Intraday Resistance Level – 0.7350

• Overall, as long as the pair is below the 100 MA it might continue trading lower.

• A break above the same could ignite more gains moving ahead.

If the NZDCHF pair moves lower from the current levels, then there is a bullish trend line on the daily chart, which could act as a support for the pair in the near term.

SILVER

SILVER moved lower as the US dollar was seen gaining pace recently. There is a bearish trend line on the daily chart of SILVER which acted as a barrier for SILVER buyers. There is also a fact that prices are well below the 100-day simple moving average, which is a bearish sign for the SILVER in the near term. On the downside, initial support is around the last swing low of $16, followed by the $15.80 level.

Intraday Support Level – $15.80

Intraday Resistance Level – $16.50

• Selling rallies around the trend line look like a good option.

• A break above the same might call for more gains moving ahead.

On the upside, a break above the 100-day MA might ignite more gains SILVER in the short to medium term.

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