Monday February 7, 2005 - 17:06:04 GMT
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European Forex Session Wrap-Up - 7/2/2005
The European session closes today, february 7th, with the USD again as the winner for the session. After breaking significant levels on Friday, the door was clearly open for the USD to produce new gains, as widely commented and expected in my daily reports. The greenback has done things to perfection against the CHF, almost hitting the 200-day moving average, but enough for a more than good run from 1.13. Those who followed the double bottom formation, today met their target and can book profits and wait for the eventual break of the 200-day moving average or a good retracement to re-enter the market. The fact that both EUR and GBP are still far from that moving average suggests that both USD/CHF and USD/CAD pairs will go to the upside in coming weeks. The CAD, as stated in the morning and the days before, was the real leader of the move some weeks ago when its warning signs became a reality and the USD started to gain ground against the other currencies. Only a correction or a new trend unfolding? The latter for me, but that 200-day moving average has to be cleared for that.
Trading Recap :At the time of this writing, the EUR is trading around 1.2775 against the greenback, or 90 pips down with respect to european opening levels, being sold-off without any retracement at the moment. GBP is doing around 1.8600, 150 pips down, making of it the real loser for the session. The Swiss Franc –CHF- around 1.2230, loosing (USD gaining) 115, confirming taht the break of the key 1.1960/75 level provided extremely good momentum to the pair. And finally, the Yen around 104.70, down some 60 pips.
USD small brothers session performance: the AUD is trading around 0.7710, 15 pips up, the NZD trading around 0.7040, or 60 pips down, and CAD trading around 1.2565, down 75 pips.
Economic for february 8th.5:00:00 AM JPN Dec Household Spending y/y (1) // 11:00:00 AM GER Dec Industrial Production y/y prelim (3). My (valoration) of the economic events of the day goes from 1 to 5 depending on the influence the news has in the market (1 lowest – 5 highest).
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