Wednesday February 23, 2005 - 10:27:40 GMT
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Forex Morning Meeting - European Session, 23/2/2005
Good morning everyone from FXstreet.com. The Crude oil broke the $51 level closing around $51.40 yesterday, threatening to make new highs. In the US stock markets, the Dow Jones Industrial Average plunged to close around 10.610. Stock markets look pretty overbought and this reaction is not a surprise indeed, given also the fact of the big rise in the crude oil.
Forex Technicals at a glance
Euro/Usd : At the time of this writing, the pair is trading around the 1.3215 level. Pair threatened of breaking the 61.8% retracement level of the current downleg after proving itself strong enough to easily break the 50-day moving average on a closing basis. It has lost some momentum since then, but the sentiment of further gains for the pair is prevailing in the market right now. Claimers of 1.40+ levels are quite happy with the current upmove, but it ain’t over yet for USD bulls and the 1.33 level is the last chance for the greenback bullish momoentum to resume.
Moving averages overview : EUR has its 200-day moving average today at 1.2625. We have a bearish cross from the 2 shorter moving averages for some time now, with the 20-day down the 50-day. Pair is now above them both.
Indicators watch : Indicators watch-level 1 (signal generator): EUR Positive – no signal. Indicators watch-level 2 : EUR Positive.
Gbp/Usd : At the time of this writing, the pair is trading around the 1.9095 level. Similar to the EUR, the british curency’s upmove has been halted in front of the 61.8% retracement level o fthe current downleg, tough momentum is strong for the pair in the last sessions. 1.90 level should serve as dynamic support for the time being, and we can’t rule out further gains from the pair, only when that last key fibo level is cleared out.
Moving averages overview : GBP has its 200-day moving average today at 1.8476. We have the 20-day moving average cross the 50-day on the down for some time now. Pair is above them both, though.
Indicators watch : Indicators watch-level 1 (signal generator) : GBP Positive (signaled long feb.11, 2005). Indicators watch-level 2: GBP Positive.
Usd/Chf : At the time of this writing, the pair is trading around the 1.1635 level. The CHF is the leader currency among the majors so far these days, and it is howing its good momentum especially against the greenback. Pair has broken down all fibo retracement levels, therefore its bullish momentum is gone and only a big upmove would make things change again. Expect selling pressure around previous upport around 1.1660/75 and much more around 1.1750. First good support area around 1.1475 now. Still puzzling to see how a great weekly technical picture (from indicators point of view) is unable to produce gains in this geo-political driven market.
Moving averages overview : USD has its 200-day moving average today at 1.2176. The 20-day holds above the 50-day after the bullish cross a few days ago. Pair is below them both now.
Indicators watch : Indicators watch-level 1 (signal generator) : USD Negative (no signal). Indicators watch-level 2: USD Negative.
Eur/Gbp : At the time of this writing, the pair is trading around the 0.6920 level. Pair finally broke both the 20-day simple moving average and the downtrend line, and is now looking for an eventual break of the 0.6950 level, where we find today the 50-day moving average. Dinamic support found around 0.69-0.6895.
Moving averages overview : pair has its 200-day moving average at 0.6829 today. We have a bearish cross from the 2 moving averages but pair is trading above the 20-day now.
Indicators watch : Indicators watch-level 1 (signal generator) : EUR Neutral. Indicators Wacth-level 2 : EUR Neutral-Negative.
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.
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