Home

 

 

THE MARKETS TODAY:  Wednesday 10 March 2010 / 06:35h CET

EUR/USD 1.3596 Neutral
EXPECTATION THE RISK SUPPORT AND RESISTANCE
The Euro spent another week consolidating above 1.3434 support and looking at the weekly chart we can see that price has formed a series of Doji candlesticks below the weekly 200 EMA but also note that the 21/55 weekly EMA’s have had a bearish crossover as well. The question is ‘Is the market taking a breather after the severe drop from 1.5140 before resuming the downtrend or are we forming an expanding base for a potential reversal (medium term pullback)?’ At this point it is very hard to answer this question but one thing is for sure, Support and Resistance levels are clearly defined so if a breakout/breakdown occurs in the coming trading session, the move will have considerable momentum behind it. Patience and discipline is urged at this juncture. Play the 1.3434 – 1.3836 range until a breakout/breakdown occurs.
1.3434 STRONG 1.3834 STRONG
1.3068 STRONG 1.3872 STRONG
1.3000 STRONG 1.4000 STRONG

GBP/USD 1.4969
EXPECTATION THE RISK SUPPORT AND RESISTANCE
Cable was fairly subdued yesterday and has found support at its former trendline resistance (now acting as support) which also coincided with the 61.8% Fibonacci Retracement level ( 1.4940) of the 1.4782 – 1.5195 rally. If price manages to sustain itself above 1.4940 then a push to the upside is highly probable but the pair faces strong resistance at 1.5000 and 1.5100. A confident break below 1.4940 sees strong intraday support at 1.4870 and if this level gives way then a challenge of the recent 1.4782 low is likely.
1.4940 STRONG 1.5000 STRONG
1.4870 STRONG 1.5100 STRONG
1.4782 STRONG 1.5200 STRONG

USD/JPY 89.96
EXPECTATION THE RISK SUPPORT AND RESISTANCE
The pair yesterday found support around 89.60 which is the hourly 200 EMA and is currently challenging the 90.00 psychological level. A confident break above 90.00 will likely see the pair trade towards the 90.67 high. A break above this level sees 91.30 as the next level of resistance. However a break below 89.60 sees immediate support at 89.40 and 89.00. A break below 89.00 sees 88.67 as the next level of strong support.
89.60 STRONG 90.00 STRONG
89.00 STRONG 90.67 STRONG
88.67 STRONG 91.30 STRONG

USD/CHF 1.0753
EXPECTATION THE RISK SUPPORT AND RESISTANCE
The Swissie as with the Euro is still consolidating near its recent highs and directional bias is still unclear. Focusing on the 15min chart the pair yesterday found strong support at the 50% Fibonacci Retracement level (1.0740) of the recent 1.0676 – 1.0803 advance. If this support level holds intraday and the pair breaks confidently above 1.0761 then there is a high probability that the 1.0803 high will be tested. A break above this level sees intraday upside targets at 1.0830 and 1.0852. However, a break below 1.0740 sees immediate support at 1.0725 and 1.0700. A break below 1.0700 sees 1.0676 and 1.0646 as the next levels of support.
1.0700 STRONG 1.0761 STRONG
1.0646 STRONG 1.0803 STRONG
1.0550 STRONG 1.0850 STRONG

XAU/USD 1124
EXPECTATION THE RISK SUPPORT AND RESISTANCE
Gold lost ground yesterday and found strong support at 1110 which propelled it higher and is currently challenging 1126 resistance. A confident break above 1126 sees 1132 as the next level of resistance and if this gives way then 1141 is a likely intraday upside target for Gold. However, a break below 1122 could see yesterday’s low challenged. A confident break below 1110 sees 11000 as the next level of strong support for the precious metal. However, a breakdown of the channel (flag pattern) could see the downside accelerate in Gold and 1110 and 1100 are the next levels of support for Gold.
1122 STRONG 1126 STRONG
1110 STRONG 1132 STRONG
1100 STRONG 1141 STRONG

Currency forecasts brought to you by

TADAWUL FX Cyprus
Tel : +357 25 200 920 / Fax : +357 25 37 37 83