Forex Market Updates & Commentary |  |
- FXDD Week Ahead Monday March 7th 2011
- The Week Ahead from FXDD
- GBPUSD in between support and resistance
- USDJPY below 100 day MA at 82.56. London/Europe looks to exit
- EURUSD tests intraday support. Is the market still short?
| FXDD Week Ahead Monday March 7th 2011 Posted: 04 Mar 2011 01:38 PM PST
Start the trading week off right with Greg Michalowski and Bill Lawless for the FXDD Week Ahead Monday March 7th 2011 at 9:30am est.Click here to reserve your seat |
| Posted: 04 Mar 2011 01:03 PM PST |
| GBPUSD in between support and resistance Posted: 04 Mar 2011 08:08 AM PST The GBPUSD is another pair which is having difficulty with a bias today. The pair has been up and down a number of times already but some levels are being established. For one, on the topside the 1.6297/04 level has found selling interest. On the downside, the four hourly bar lows at 1.6233 provide the support. In between is the 100 hour MA which stands at 1.6278 and the 1.6254 level which has been a support and resistance level for the week. With the price testing the 1.6254 level now, a break below should open the door for a move to the key support at 1.6233.
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| USDJPY below 100 day MA at 82.56. London/Europe looks to exit Posted: 04 Mar 2011 07:52 AM PST
The 100 day MA comes in at 82.56. THis was trendline support from earlier today. The 38.2% of the move down from from the high today to the new low at 82.21 comes in at the 82.52 (100 bar MA on the 5 minute chart is also at the level - blue line in chart below). With the price back above the initial low for the day at the 82.28 level, the market seems to have found a bottom. The question is does it have the “will” to push much higher? London and EUROPE close/squaring will likely keep the market choppy. How the market reacts next week, will be dependent on the technicals with the 82.56 level (100 day MA) likely to be the key level. The fundamentals are simply too mixed (in my mind at least).
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| EURUSD tests intraday support. Is the market still short? Posted: 04 Mar 2011 07:24 AM PST The EURUSD tried above the 1.4000 level but has come off as the NY morning progresses. The pair is testing th 38.2% of the sharp move higher today at the 1.3981 level. A move below the level will likely signal the market is more neutral now. However, it does seem the market is finding some buyers at/near the level. If the market is still short, I would expect buyers to come in at this level to square up before the weekend. For the shorts it is better than 1.4000 plus. They may not be happy. They may prefer a move back down toward 1.3965, but the EURUSD continues to have a bid on any dips. Fighting a trend is not a fight I like to get into. Honestly, the market has me a bit confusing for me today. If I were to focus on the fundamentals, I would argue for a stronger dollar on the back of the better than expected employment report. However, the market has to wrestle with the tension in Libya and the ECB seems to be in the back of traders minds (tightening next month more likely). In addition, shorts get NO satisfaction. So the technical picture to the downside never materialized and shorts have been forced to cover. This is often the story of a trending market and the EURUSD did have the weeks low on Monday, 3 hours from the opening of trading. Closing the week near the high is a possibility and would complete the fairly modest but steady climb higher (from 1.3710 to 1.4007)
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