Live chatDaily Market Analysis 09/03/2010
Yesterday, the Euro began the day surging and reached a high of 1.3704 early. Shortly thereafter, the market reversed direction and by day's end, the pair closed exactly at its open price of 1.3633. This pattern was common to US equities yesterday, which also remained virtually unchanged. The Dow Jones Industrial average lost just 0.13%, while the S&P 500 was trimmed by only 0.02% throughout the day. The NASDAQ gained 5.86 points, and closed the day at 2,332.21. Euro Zone data was mixed yesterday, as the Sentix Investor Confidence index as released more positive than expected at -7.5. Meanwhile, German Industrial Production failed to reach its forecast of 1.1%, only showing a rise of 0.6%. There was no data in the US yesterday. Today, the French Trade Balance showed improvement, with a release of -3.7B. US data will be thin again, with only one release this afternoon. The IBD/TIPP Economic Optimism Index is expected to rise, with a current forecast of 48.9 from its previous release of 46.8.
Although data might be scarce, economic officials remain active. Greek Prime Minister George Papandreou warned the G20 countries to closely monitor market speculators. He went as far as to say that this issue must be made a priority if another financial crisis is to be avoided in the near future. The Prime Minister plans to present his agenda to President Obama today. Meanwhile, China, which leads all countries in volume of foreign exchange reserves held, began to invest in the US Treasury market, after stopping this type of action following the global recession. Chinese officials did warn however, that they will avoid increasing their gold holdings anytime soon. International Economic events such as these are likely to also play a large role in the behavior of the market, particularly due to the lack of data since the beginning of the week.
Although data might be scarce, economic officials remain active. Greek Prime Minister George Papandreou warned the G20 countries to closely monitor market speculators. He went as far as to say that this issue must be made a priority if another financial crisis is to be avoided in the near future. The Prime Minister plans to present his agenda to President Obama today. Meanwhile, China, which leads all countries in volume of foreign exchange reserves held, began to invest in the US Treasury market, after stopping this type of action following the global recession. Chinese officials did warn however, that they will avoid increasing their gold holdings anytime soon. International Economic events such as these are likely to also play a large role in the behavior of the market, particularly due to the lack of data since the beginning of the week.
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| Resistance | 1.3631 | 1.3640 | 1.3658 | |
| Support | 1.3577 | 1.3587 | 1.3604 | 1.3614 P |
We are trading according to the channel movement, generated on 1 hour "X-twisted" indicator's chart.
Indicator's signal line is located near the support trend line.
I expect bullish movement towards the upper resistance trend line.
Targets : 1.3670 – 1.3700 – 1.3730 – 1.3770 (1 – 2 days)
Chart # 1 - EURUSD 1 hour
Indicator's signal line is located near the support trend line.
I expect bullish movement towards the upper resistance trend line.
Targets : 1.3670 – 1.3700 – 1.3730 – 1.3770 (1 – 2 days)
Chart # 1 - EURUSD 1 hour
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Gold generates an "A-B-C reversal pattern" on the 1 hour "X-twisted" indicator's chart.
We are located in point "C" and expect bearish behavior.
Bearish targets : 1115.00 – 1110.00 - 1107.00 – 1102.00 (1 - 3 trading days).
Chart #2 - GOLD 1 hour
We are located in point "C" and expect bearish behavior.
Bearish targets : 1115.00 – 1110.00 - 1107.00 – 1102.00 (1 - 3 trading days).
Chart #2 - GOLD 1 hour
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