Monday July 11, 2005 - 09:20:23 GMT
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US Unemployment rate at 4-year lows
Good morning everyone from FXstreet.com. US unemployment at 4-year lows and the DJIA index surged on Friday action in Wall Street. Crude Oil trading at $58.7 and mroe downside could be seen in the next sessions.
Forex Technicals at a glance
Fridayís US unemployment data, which was basically good, caused, as it was expected, a good shake in the fx markets. The overall winner of that shake was the Euro, which reversed the early losses and ended up pointing upwards in a daily reversal candle that for sure frightened the $$$ bulls. Pound kept on sliding after july 7th blasts. Eur/Gbp, consequently, rose to the 0.69 level, which is expected to protect of further gains from the single currency. 0.69-0.6920 area should cap any rally for now and put the pair back to the mid 0.68ís. If that level is broken (after serious fight, at least), 0.70 is eyed as the next upside target. Usd/Cad slipped back down below 1.22ís in strong move, despite crude oilís tick down.
Point of View:News and events are always used the way it benefits most the major number of big players possible. Last frdayís data, again, was a clear example of this situation. Most of even-driven traders would have longed the dollar after the unemploymentnews release, but faced a key daily reversal instead. Therefore, long positions accelerated on short covering and new net long positions, causing the daily candle formation to result a key reversal one.
Trading Tips:Unless 0.6920 is clearly taken out, eur/gbp short positions are favoured.
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