Intraday Market Thoughts

Archived IMT (2011.02.28)

by Ashraf Laidi
Feb 28, 2011 18:16

EURGBP back below 0.85 after failing the 0.8590 trendline resistance (extending from the Oct 24 high thru the Jan 25 high), dragged by a negative daily slow stochastic, while facing the Jan 11 trendline support at 0.8390. Prelim support stands at 0.8460. Watch out for tomorrows UK manufacturing PMI (exp 61.5 from 62), which is always a market mover. We have yet to see a touch/close above $1.6330s in GBPUSD, which is the confluence of the trendline resistance from 2007 and 2008. Playing EURUSD ahead of Thursdays ECB via GBPUSD and EURGBP remains a consideration, especially on robust UK data via GBPUSD longs and EURGBP shorts on the rationale of dovish ECB. US equity indices slip in the red but we have yet to see the first 2 consecutive weekly decline in 12 weeks. ASHRAF REMAINS ON TRAVEL in the US. IMTs shall revert to normal frequency on Wednesday.


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