Intraday Market Thoughts

Archived IMT (2011.01.12)

by Ashraf Laidi
Jan 12, 2011 12:35

PORTUGUESE bond auctions went successfully with strong demand (3.2 bid-and lower yields than the previous auctions but had no impact on EURUSD, which hit a session low of $1.2960. The pair did not even reach the $1.3070 resistance before shedding nearly a full cent. Hourly stochastics suggest a retest of $1.2930, with $1.2880 a logical continuation target. GBPUSD rose as high as $1.5672 before retreating to $1.5580s. the $1.5630s I mentioned is the price above which cable needs to CLOSE THE NY SESSION in order to break the Nov trendline. The EURGBP Death Cross mentioned yesterday continues to suggest 0.8290, followed by 0.8150. A break below 0.8150 would potentially entail a breakdown to as low as 0.78, which is the 61.8% retracement of the rise from the 2007 low to the Dec 2008 high. This point is made in Tuesdays Reuters Video on EURGBP and GBPUSD :


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