Tuesday April 12, 2005 - 09:00:22 GMT
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Forex Morning Meeting - European Session, 12/4/2005
Good morning everyone from FXstreet.com. The Crude oil closed around $54 yesterday, recovering some ground. In the US stock markets, the Dow Jones Industrial Average closed around 10.450, holding below 10.500.
Forex Technicals at a glance
Euro/Usd: At the time of this writing, the pair is trading around the 1.2990 level. Interesting price action, driving the pair to the test of the strong 1.3015-30 area, with the 20-day simple moving average acting as the first resistance level on the way. With today’s key Trade Balance number (12:30GMT) on the release, I am sure we will see volatility increasing. Since there won’t be a clear resumption of the bullish momentum on the single currency unless we break above 1.32, we might see the use of the trade deficit number for a good dollar’s play today. We will see it in few hours time.
Moving averages overview: EUR has its 200-day moving average today at 1.2789. Pair has a bearish cross by the shorter moving averages.
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 1.8920 level. Pair has broken the 20-day moving average to the upside and now it is fighting with the 50-day one. The number due out today will clearify this situation, but it is interesting to see that since we had the bearish cross by the shorter moving averages we haven’t seen much decline on the pair. Since we are testing the 50-day moving average and we hold a bearish cross in the pair, sellers could be attracted and drive the pair lower.
Moving averages overview: GBP has its 200-day moving average today at 1.86. Pair has a bearish cross now from the short moving averages.
Indicators watch: Indicators watch-level 1 (signal generator) : GBP Neutral – no signal (flat). Indicators watch-level 2: GBP Neutral-Negative.
Usd/Chf: At the time of this writing, the pair is trading around the 1.1915 level. Despite we still have a bullish cross for the pair, its price action must regain momentum (maybe with today’s data) to keep the USD view supportive for the moment. After braking back down the 200-day moving average, pair hasn’t been unable to stop the sellers, and a quick reaction is needed (maybe in front of the 50-day moving average) to change the situation.
Moving averages overview: USD has its 200-day moving average today at 1.2057. Pair has confirmed a bullish moving averages cross.
Indicators watch: Indicators watch-level 1 (signal generator): USD Neutral - no signal – (flat). Indicators watch-level 2: USD Negative.
Eur/Gbp: At the time of this writing, the pair is trading around the 0.6865 level. Pair has turned the bullish cross to a bearish cross and it is traidng below the 200-day simple moving average, so selling pressure could resume soon. However, indicators are showing some strength for the pair at the moment, so the overall picture looks very indecisive.
Indicators watch: Indicators watch-level 1 (signal generator): EUR Neutral. 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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