Intraday Market Thoughts

Archived IMT (2009.11.18)

by Ashraf Laidi
Nov 18, 2009 16:04

IS OIL CONVINCED by the 0.9 mln draw in EIA crude inventories? Oil briefly touched a session high of 80.28 before retreating to the 79.80s. With oil traders aware of the effect of the storm, it is unexpected for oil to reverse its 4-week downtrend and close above $80.50. Dollar also somewhat supported by comments from Atlanta Fed president Bullard indicating that the memory of housing bubble may push Fed to start rate hikes MORE QUICKLY than after past recessions. In the event that oil closes below 79.40, the dialy candle could become a bearish doji, with a relatively high shadow, suggesting fresh downside. EURGBP breaks above the 4wk trend line of 0.8910, calling 0.8930. 0.8975 is the next target after the 61.8% retracment support at 0.8820 managed to hold.


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