Friday March 18, 2005 - 11:17:22 GMT
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Forex Morning Meeting - European Session, 18/3/2005
Good morning everyone from FXstreet.com. The Crude oil closed around $56.25 yesterday, making a second “hanging man” candlestick close, and almost confirming the bearish signals for it. In the US stock markets, the Dow Jones Industrial Average closed around 10.625, almost unchanged with respect to previous day’s closing level, but unable to gain momentum for now.
Forex Technicals at a glance
Euro/Usd: At the time of this writing, the pair is trading around the 1.3315 level. Pair did a good back and forth swigs in yesterday’s sessions, as anyone can see by switching to hourly charts. However, pair had no chance to break and stay above 1.34 and it has dipped down to almost the current uptrend line level, around 1.3315, which should act as support if the current upmove wants to stay longer in the market. That level coincides with the 20-day simple moving average. Fibonacci support lines start from the 1.32 level. New longs should now wait for the 1.34 level to break again. Those who are already long for the pair might want to keep an eye on the current uptrend line.
Moving averages overview: EUR has its 200-day moving average today at 1.2721. 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 1.9160 level. Pair is testing the 20-day moving average again and threatening on an eventual break. Talking of Fibonacci dynamic supports (Fibonacci Fan lines) we should see support around 1.9120, and more around 1.8950/1.90 where we also find the 50-day moving average. Only a sustained break of 1.93 leads to further gains for now.
Moving averages overview: GBP has its 200-day moving average today at 1.8555. 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-Negative.
Usd/Chf: At the time of this writing, the pair is trading around the 1.1635 level. As said in previous reports, the USD/CHF looks to be the leading USD indicator for now. It is currently breaking the downtrend line and testing the 20-day moving average. A break of that level leads to the 1.18 level. The 1-2-3 formation remains intact while the current levels hold, so bear that in mind when thinking if the greenback is done or not. New shorts not advised unless new lows below 1.1450 are hit.
Moving averages overview: USD has its 200-day moving average today at 1.2099. We have a bearish cross confirmation of the 20-50 day moving averages.
Indicators watch: Indicators watch-level 1 (signal generator): USD Neutral-Positive - no signal – (flat). Indicators watch-level 2: USD Neutral.
Eur/Gbp: At the time of this writing, the pair is trading around the 0.6945 level. Pair is testing the first Fibonacci retracement level and at the same time the moving averages are almost in an upside cross. 0.6930 looks to be the key level in the current move. Locking-in orders below that level are advisable if one is already in the long train. If the current levels hold, the target on the upside is 0.7030 first and 0.7110 next. But that only in the case of the current levels to hold.
Moving averages overview: pair has its 200-day moving average at 0.6852 today. Pair is above both moving averages and looks poised for a possible cross on the upside in the next 2-3 sessions.
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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