Will Today Give Us More Clues?
It is hoped that some deviation in recent
Fed rhetoric will be seen today so as to give FX and other markets something to
go on. The clear lack of conviction of market participants begs for some more
clues as to monetary policy. Hopefully today 11:15 AM PDT we will have some more
clues. Meanwhile hawkish statements from the ECB have put a slight bid in the
EUR and EUR crosses.
In the meantime, let’s simply focus on the charts.
EUR/USD: a quick thrust higher in the last few hours and opened up the
potential of a move back through 1.2300, a level that was well offered just a
week or so ago. 1.2230-40 seems like decent support on any minor pull-backs.
GBP/USD: similar pattern to the EUR. 1.7950 seen as near-term resistance,
and 1.8000 as the level that must be breached to break multi-week bear trend.
1.8053 (50 day ema) will also limit upside.
NZD/USD: .6640 and .6620 will be the key resistance and support on an
intra-day basis. Daily and weekly chart looking strong.
EUR/GBP: this pair, which has been persistently strong in recent
sessions, is set to resume its’ uptrend. Look for .6846 and .6816-24 as the key
intra-day levels. Daily and weekly charts suggest we should be long here for a
position trade (email to follow)
USD/CAD: the sell-off in the dollar early this morning has set the stage
for a re-test of 1.2850. While the USD/CAD appears a bit oversold, further
dollar weakness will allow this pair to set new lows.
USD/CHF: bull trend-line on daily chart (1.2580) being tested after hard
sell-off earlier today. A close below here will se the stage for a move towards
1.2496. Intra-day, keep an eye on 1.2615-35 as an area where any minor pull-back
will likely stall.
As always, feel free to send me your comments and questions.