• Home ::
• Technical ::
• Analysis Reports ::
• Daily Forex Technical Report

• Send
• Print
• Add To
• Rss

Daily Forex Technical Report

43ddc4a1-c748-4460-905c-7e81e08b32c1

0

0

Daily Forex Technical Report − EUR/JPY to Test Record High, Sterling Remains Weak

Fri, Feb 9 2007, 07:53 GMT
by ActionForex.com Team

ActionForex.com

Forex Daily Technical Report

EUR/JPY to Test Record High, Sterling Remains Weak

EUR/JPY continue to strengthen today and is set to test record high of 158.61. Yen's weakness returns this week as expectation on G7 meeting that starts today turns. Markets are quick to price out the possibility of Yen being formally mentioned in the G7 communique. While Euro is supported by Trichet's confirmation of a March hike yesterday by using the word "vigilance' in the press conference, Yen is additionally pressured by soft machine order data which dropped for the first time in three months in Dec by 0.7%.

Sterling remains pressured after BoE left rate unchanged yesterday, in particular against Euro. This is apparent in the strength in EUR/USD and weakness and GBP/USD and also in the rebound in EUR/GBP. However, note that EUR/GBP is now pressing 55 days EMA (0.6685) and getting close to 0.6670 resistance. We may see a reversal in relative strength if EUR/GBP cross bounces off from this level.

Read full report (EUR/USD, GBP/USD, USD/CHF, USD/JPY) here.

GBP/USD

Daily Pivots: (S1) 1.9511; (P) 1.9618; (R1) 1.9694; More

Cable's steep fall from 1.9731 resumed in early European session today . Break of rising trend line support (1.8517 to 1.8834, now at 1.9563) suggest that fall from 1.9913 has already resumed for a retest of 1.9480 low first. Break will confirm and bring further weakness towards 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237). Touching 1.9603 resistance will turn intraday outlook consolidative first.

In the bigger picture, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI. Sustained break of the mentioned trend line support will confirm that whole rise from 1.8517. Decisive break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed earlier than we thought, before reaching 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067). Much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.

However, a strong rebound from or above 1.9237/61 will indicate that cable might made another high before finally topping out on the above mentioned divergence conditions.

Stay tuned with our Forex Newsletters

ActionForex is set up with the aim to empower individual forex traders by providing insightful contents. Analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebook downloads.

Published on  Fri, Feb 9 2007, 07:52 GMT