Wednesday March 16, 2005 - 09:26:51 GMT
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Forex Morning Meeting - European Session, 16/3/2005
European Session, 16/3/2005
Good morning everyone from FXstreet.com. The Crude oil closed around $54.50 yesterday, loosing some ground and almost confirming the bearish signals on a daily basis we are following for some days now. In the US stock markets, the Dow Jones Industrial Average closed around 10.745, moving accordingly to the bearish signal triggered on a daily basis and that was presented yesterday.
Forex Technicals at a glance
Euro/Usd: At the time of this writing, the pair is trading around the 1.3355 level. Unchanged with respect to yesterday’s levels, but with a significant price action during the whole Tuesday session. After unsuccessfully trying to break above 1.34, pair slipped down to below 1.33 (1.3290), and it has recovered some ground to current levels. I warned yesterday of the intraday bearish signals from some studies, the same that later provided buying signals after the attempt for a break below 1.33. However, a very good downtrend channel (1hr chart) has been established, and now we see that only a break above the 1.34 will resume the strong upward momentum the pair was established in the last sessions, targeting around the 1.3650 level. On the downside, the target of that intraday downtrend channel coincides with today’s daily trendline support around 1.3275, and there we should be having a good fight between bulls and bears again.
Moving averages overview: EUR has its 200-day moving average today at 1.2708. We have the confirmation of a bullish cross by the moving averages, and pair is trading above them both.
Indicators watch: Indicators watch-level 1 (signal generator): EUR Neutral – no signal (flat). Indicators watch-level 2: EUR Neutral.
Gbp/Usd: At the time of this writing, the pair is trading around the 1.9210 level. Pair tested the 20-day moving average and reacted to the upside, and it is now safely trading above it. GBP is looking much firmer than the EUR, and that has been reflected in the pair that combines them both.
Moving averages overview: GBP has its 200-day moving average today at 1.8544. We have the confirmation of the 20-day crossing the 50-day on the upside for some days now.
Indicators watch: Indicators watch-level 1 (signal generator) : GBP Negative – no signal (flat). Indicators watch-level 2: GBP Neutral.
Usd/Chf: At the time of this writing, the pair is trading around the 1.1585 level. It touched the latest daily downtrend line and the 20-day simple moving average, but failed to break above them, and today it is moving down again. However, the picture still does not look bad, though a break above 1.17 is needed to confirm this view.
Moving averages overview: USD has its 200-day moving average today at 1.2113. We have a bearish cross confirmation of the 20-50 day moving averages.
Indicators watch: Indicators watch-level 1 (signal generator): USD Neutral - no signal – (flat). Indicators watch-level 2: USD Neutral.
Eur/Gbp: At the time of this writing, the pair is trading around the 0.6955 level. The alert of the loss of momentum ended in a slide down to the good support area 0.6950. Since locking in profits is the preferred strategy for some days after pair entered the bull run, this move down should not constitute a surprise. We have moving averages almost poised for a cross, so it would be better to wait now and see if that cross finally gets confirmed to take further actions on the pair.
Moving averages overview: pair has its 200-day moving average at 0.6849 today. Pair is above both moving averages and looks poised for a possible cross on the upside soon.
Indicators watch: Indicators watch-level 1 (signal generator): EUR Positive – signaled long february,25-. 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.
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