Euro: Euro hit a record high of 1.5463 after the US non-farm payrolls report but it ended up retreating almost instantaneously as carry trades came under pressure and news that Fed will expand its TAF (term auction facility) hit the market. Eurozone economic data continues to be firm and hence further up move is expected. Euro overall traded in a range of 150 pips and closed stronger at 1.5354 compared to its opening levels of 1.5388. Its daily charts shows an highly overbought position, while the 4-hrly shows strong buying pressure. Immediate support is seen at the levels of 1.5369 (21 hourly EMA) breaking which it will correct futher down to 1.5341 (55 hourly EMA). Longs can be initiated at those levels . (Eur/Usd-1.5379).
Pound: Despite the lack of any UK economic data, the British pound soared to a year to date high of 2.0215. UK PPI data will be released today and higher inflation numbers will further boost the pair to higher levels. The pair gained 110 pips from its opening levels of 2.0105 and closed stronger at 2.0135. The daily chart is in overbought position while the 4-hrly still shows some buying pressure. Immediate resistance is seen at the levels of 2.0245 (50% retracement weekly charts). Look for opportunities to short at those levels. (Gbp/Usd- 2.0180).
Yen: USDJPY pair was very volatile on Friday, it further tumbled to an 8-year low of 101.40. The pair traded in a range of 178 pips and later strengthened in US session on the back of strong US equity markets in early US session and news that FED would pump 200 billion dollars into the banking system to address liquidity pressures in the funding markets and hence closed stronger at 102.66. Its daily, 4-hourly, and hrly charts are in oversold positions. Immediate resistance is seen at the levels of 103.05 (21 hourly EMA and 38.2% retracement hrly charts). Avoid initiating any positions at current levels. (Usd/Jpy- 102.22). by :
actionforex.com
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