Euro: Expect the correlation between Euro and stock prices to be the main theme also today
Mon, Mar 2 2009, 06:21 GMT
by Per-Erik Karlsson
Euro
Expect the correlation between Euro and stock prices to be the main theme also today, which suggest stronger Euro when stocks rally and stronger USD when stocks fall. Closed above the 1.2820 falling resistance line Tuesday, which ended the recent down trend and neutralize charts and opens sideways to higher prices. Only a break below the 1.2500 support would open for another leg down. Have resistance today at yesterday’s high at 1.2810, with minor resistance at the 21 day EMA of 1.2832.
Support: 1.2660 (Tuesday’s low), 1.2510 (yearly low), 1.2328 (2008 low)
Resistance: 1.2810 (yesterday’s high), 1.2898 (Wednesday’s high), 1.3000 (psychological resistance), 1.3090 (February high)
240 min – Trading inside a triangle at the moment, rising support at 1.2642 and falling resistance coming in at 1.2932.
Cable
Remains weak below the falling resistance coming in at 1.4712 today. The 1.50 level is also key resistance level and key support remains the 1.4050 level. Key levels for today are, falling resistance at 1.4712 and underlying support down at 1.4108 (underlying support). Need to break out of this trend channel to see any bigger directional move.
Support: 1.4150 (20th of Feb low), 1.4108 (underlying support), 1.4050 (2009 low), 1.3501 (2008 low)
Resistance: 1.4712 (falling resistance), 1.4985 (Feb. 2009 high) 1.5372 (2009 high)
120 min – Falling resistance at 1.4712 is key level to break to rally and 1.4050 is the break down level.
USDCHF
Trading inside the rising trend channel with 1.1925 overhead resistance and 1.1495 underlying support. Need to a close outside of this range to trigger and bigger directional move. Last Friday’s price action was bearish and suggest a possible break to the down side that is what I favor for the moment.
Support: 1.1495(triangle support), 1.1313 (27th of January low)
Resistance: 1.1884 (Friday’s high), 1.1925 (triangle resistance)
USDJPY
Bullish momentum intact above the interim risings support at 94.40 today. Have minor support at that former overhead resistance coming in at 96.37 today. Next target is now 100.54 level. The correlation between stock prices and JPY is totally gone and seems to be more focus on the struggling Japanese economy over the last few weeks.
Support: 96.37 (former overhead resistance), 94.62 (break out level), 91.40 (rising support), 87.09 (Dec. 08 low)
Resistance: 100.54 (November 2008 high)
EURJPY
The bias is to the upside above the interim rising support at 122 level. Not been able to make any substantial move above the 125.74 that is the 23.60% Fibonacci retracement of the 169.96 to 112.07 move. A break above 126.00 would target 130 level next.
Support: 122.02 (rising support), 120.24 (former overhead resistance), 117.88 (Friday low), 115.61 (rising support)
Resistance: 125.74 (23.60% Fibonacci of the 169.96 to 112.07 move) 131.09 (December 08 high)
USDCAD
That 1.30 level remains the key resistance level to break to get another rally higher. With minor resistance sitting at 1.2763. Rising support coming in at 1.2360 today, which needs to hold to keep the recent bullish momentum for a possible test of that 1.2763 level again.
Support: 1.2360 (rising support), 1.1759 (last reaction low), 1.1685 (rising support), 1.1460 (break out level)
Resistance: 1.2763 (2009 high), 1.3007 (March 2006 low)
EURGBP
The interim falling resistance (0.8845) has been broken Wednesday and this opens for a test of the 0.9079 which is the key resistance level and gateway to higher levels. Key support remains the 0.8630 level.
Support: 0.8752 (risings support), 0.8630 (2009 low)
Resistance: 0.8976 (Wednesday ‘s high), 0.9079 (February high)
