Monday February 7, 2005 - 10:17:38 GMT
Share This Story
FXstreet.com - www.fxstreet.com
Forex Morning Meeting - European Session, 7/2/2005
Good morning everyone from FXstreet.com. The Crude oil is trading around the $46 level, keeping its current sideways-to-negative tone valid. In the US stock markets, the Dow Jones Industrial raised after the unemployment was released, closing above the 10.700 level.
Forex Technicals at a glance
Euro/Usd : At the time of this writing, the pair is trading around the 1.2835 level. Pair followed all the warning signals I have been commenting on the longer term charts. As said in previous reports, fx moves arenít (like in any other financial market) one-way moves, but if the longer term picture is negative, the selling pressure will be stronger than any buying. We had this picture last week, where the single currency managed to hold above the 1.30 level for almost the whole week, even produced some gains in the middle of the week, but then, on Thursday and Friday, the selling pressure from the longer term charts came in and drove the pair below the key levels it had been holding till then. The 200-day daily moving average magnet could play its role now, but one thing has to be clear from now on: the levels we currently are in are attracting long term EUR buyers, who look for 1.40+ in the single currency, despite the longer-term bearish chart picture we have presented here. However, their buying pressure can be both big and well sustained, so one must keep an eye on to that. I expect that pressure to give up once the 200-day moving average is broken down, but thatís far from current levels.
Moving averages overview : EUR has its 200-day moving average today at 1.2561. We have a bearish cross from the 2 shorter moving averages for some time now, with the 20-day down the 50-day.Indicators watch : Indicators watch-level 1 (signal generator): EUR Negative. Indicators watch-level 2 : EUR Neutral.
Gbp/Usd : At the time of this writing, the pair is trading around the 1.8690 level. After breaking the 20-day moving average to the downside, the pair looks very vulnerable again, poised for an eventual break of the good 1.8650 support. If that level is broken, we should see a re-test of the current lows around 1.85. If we consider the lline between october,2004 lows and the recent lows a new uptrend, then weíre just testing it, but with the selling pressure just reinforced by the fact that on Friday the pair tried to break the downtrend line once again (it was around 1.89), and failed, and the resulting daily candle was a very bearish one.
Moving averages overview : GBP has its 200-day moving average today at 1.8410. We have the 20-day moving average cross the 50-day on the down for some time now. Pair is below both of them again.
Indicators watch : Indicators watch-level 1 (signal generator) : GBP Neutral. Indicators watch-level 2: GBP Neutral.
Usd/Chf : At the time of this writing, the pair is trading around the 1.2125 level. The leader (among the majors) of the USD move so far. It broke before the EUR did, followed perfectly Usd/Cad move, and led the other majors to move to the downside against the greenback. It is just shy of the 200-day moving average, so thre we could see some profit taking, helped by some warning signals in the short time frames. However the daily picture looks intact, and will keep that way while above both movings.
Moving averages overview : USD has its 200-day moving average today at 1.2236. The 20-day holds above the 50-day after the bullish cross a few days ago. Pair is trading above them both.
Indicators watch : Indicators watch-level 1 (signal generator) : USD Bullish (signaled long on december 30, 2004). Indicators watch-level 2: USD Neutral.
Eur/Gbp : At the time of this writing, the pair is trading around the 0.6870 level. As stated in the previous report, the 0.6850 magnet had to be tested after the break of the uptrend channel. However, that area is resisting for now and provided a good rebound for the pair, though its daily picture reamins weak so far.
Moving averages overview : pair has its 200-day moving average at 0.6819 today. We have a bearish cross from the 2 moving averages.
Indicators watch : Indicators watch-level 1 (signal generator) : EUR negative (signaled short on january, 10). Indicators Wacth-level 2 : EUR Neutral.
Indicators watch-Level 1 : Trend indicators Direction, providing some useful investment information.
Indicators watch-Level 2 : Momentum Indicators Direction (working in pairs), providing current market sentiment for the instrument.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."