Tuesday April 19, 2005 - 09:12:22 GMT
Share This Story
FXstreet.com - www.fxstreet.com
Forex Morning Meeting - European Session, 19/4/2005
Good morning everyone from FXstreet.com. The Crude oil closed around $50.60 yesterday, holding the psychological level for now. In the US stock markets, the Dow Jones Industrial Average closed around 10.070, losing a bit of ground but managing to hold above the 10k level.
Forex Technicals at a glance
Euro/Usd: At the time of this writing, the pair is trading around the 1.3010 level. Further gains for the single currency, following the solid rally in yesterday’s session. Technical picture is currently helped by the geopolitical uncertainty that the China-Japan conflict is showing. However, and despite all the fundamental picture that we have now in front of our eyes, the move of the EUR can be considered as “normal” after holding the 200-day simple moving average. However, the picture is still gloomy for the european currency. Despite the voices calling for a 1.40 raise once again, I prefer to say that we are currently in a more favourable environment for the USD than for the EUR. This picture will change if the latter manages to break and stay above 1.3150, but that level is far from where we stand at the moment. So, in short, we are in no man’s land at the moment, where any spike can be considered as the resumption of the downtrend or the final rise, but, as said in previous reports, unless key levels are definitely broken, we won’t be offered good risk/reward trades.
Moving averages overview: EUR has its 200-day moving average today at 1.2805. Pair has a bearish cross by the shorter moving averages. Pair is above 20-day moving average now.
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 1.9075 level. Pair is showing more strength day after day, and has finally broken the 50-day moving average on the upside. However, pair is far from breaking the bearish trendline that was originated in late 2004. Therefore, unless a break of the 1.93 level is seen, further weakness can’t be ruled out for the pair. Some indicators are beginning to show that possibility too, so we may have a false break on the upside in place. One more thing that could hurt the GBP at the present is the bearish indications that its GBP/JPY cross is giving.
Moving averages overview: GBP has its 200-day moving average today at 1.8610. Pair has a bearish cross now from the short moving averages. Pair is above both moving averages now.
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 1.1895 level. Pair did exactly what we were waiting for. It tested the 50-day moving average at 1.1850, and now is bouncing off that level, showing that USD bulls are fighting hard to keep the dollar in good shape. Therefore, and acting once again as the leader in the currency field, I think that if USD manages to go back up and do again a test of the 200-day moving average, it will be the last one and the bullish momentum will stay for some time.
Moving averages overview: USD has its 200-day moving average today at 1.2048. Pair has confirmed a bullish moving averages cross, but is only above the 50-day one now.
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 0.6815 level. The strength of the pound across the board has left the cross again exposed to a test of the 0.68 level. It is yo-yo trading at the moment and not much more can be added. Current range: 0.68-0.6850.
Moving averages overview: Pair has its 200-day moving average today at 0.6876. Pair has a bearish cross now from the short moving averages confirmed today.
Indicators watch: Indicators watch-level 1 (signal generator): EUR Neutral-Positive (no signal). 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.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."