Will Our Patience Be Rewarded?
While this morning’s Durable Goods Report came in weaker than expected,
it still
did post an increase. For now the dollar remains bid and the major continue to
be under pressure
The EUR has broken trend-line support going all the way back to Sep ’03 but remains
supported by the 200 day ema (1.2045).
The GBP is also on the verge of testing trend-line support from Aug ’03. With
the break below the 50 day ema yesterday, expect lower levels in the days to come,
assuming no weak data out of the US.
Now the market looks ahead to the GDP report on Friday, so the market may look
to digest the recent moves and witness a bit of mean reversion.
Our one remaining position is the short in EUR/CHF which still has potential to
play out. It stalled just ahead of the 200 day ema at 1.5395
and the stochastics on the daily are now turned lower. Looking at a weekly chart,
it failed at two key moving averages there as well. So while this trade appears
to be one that is forcing us to be real patient, perhaps our patience is on the
verge of being rewarded.
Key Levels:
EUR: 1.2090, 1.2010, 1.2052
GBP: 1.8140, 1.8250, 1.8232
EUR/CHF: 1.5372, 1.5340, 1.5395
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