Thursday February 10, 2005 - 10:27:30 GMT
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Forex Morning Meeting - European Session, 10/2/2005
Good morning everyone from FXstreet.com. The Crude oil is trading around the $45.7 level, holding above $45 and . In the US stock markets, the Dow Jones Industrial Average dipped below 10.700 (closed around 10.665), taking a breath after the recent 350-points rally. Remember that today, 1:30pm GMT, we have the key US trade deficit number, which is expected to show a good decline with respect to previous monthís.
Forex Technicals at a glance
Euro/Usd : At the time of this writing, the pair is trading around the 1.2790 level. Pair is holding above the 1.2730 support, and trading sideways keeping an eye on todayís economic data (US trade balance). However, while the pair trades below 1.30 is bearish, despite some strength signs in the shorter time frames, which may lead to a short-lived rally if the aforesaid level is not cleared out. Medium term picture remains unchanged.
Moving averages overview : EUR has its 200-day moving average today at 1.2567. 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 (no signal though). Indicators watch-level 2 : EUR Neutral.
Gbp/Usd : At the time of this writing, the pair is trading around the 1.8605 level. Iím keeping a close yen on the pair, because a break above 1.88 would trigger two very strong bullish signals, and would negate its medium term brearish view, at least for the coming days. But donít forget also that the 200-day moving average magnet is very close to current levels, so what I surely expect with the economic news that are due out today and in the coming days, is a volatility increase for the pair.
Moving averages overview : GBP has its 200-day moving average today at 1.8415. 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 Negative-Neutral. Indicators watch-level 2: GBP Neutral.
Usd/Chf : At the time of this writing, the pair is trading around the 1.2165 level. After showing itself unable to break the 200-day moving average, pair is trading sideways-to-the-downside yet for another session. A move towards the 20-day moving average canít be ruled out before attempting the break of the 200-day. However, it would be better if pair trades above 1.2050, to keep its current bullish tone. Having touched the 200-day moving average earlier than its fellow europeans, it may be a strong bullish signal if the level is cleared out.
Moving averages overview : USD has its 200-day moving average today at 1.2231. 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 0.6875 level. Pair tried to esacpe from the eventual break of the good 0.6850 support, and it indeed rallied towards the 0.69 level, but has proven itself unable to break it, and it is now again threatening the level. The 200-day moving average magnet canít be ruled out as the next valid support in case of an eventual break of the level.
Moving averages overview : pair has its 200-day moving average at 0.6820 today. We have a bearish cross from the 2 moving averages and pair is trading below them both.
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.
Questions & comments : [email protected]
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