Intraday Strategy Report
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EUR/USD - Hourly
Support Resistance 1.3334 1.3440 1.3267 1.3701 1.3195 1.3831
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Friday, September 24, 2010
, Posted by Usman Ali Minhas at 8:00 AM
The Bank of Japan appears to have re-entered the fray, selling JPY aggressively in a single action midway through the Asia-Pacific session. In Europe, sentiment improved after the survey of German business confidence rose to a three-year high. The EUR and AUD are the top performers while JPY and USD are the laggards.
There was no confirmation of yen intervention from the Japanese Ministry of Finance but the yen tumbled about 100 pips against all the majors in a single spike. The prospects for further intervention before the week comes to an end may be growing as the yen has recovered much of its losses, especially against USD and JPY, where it is not trading unchanged on the day.
The euro got a lift from the IFO sentiment surveys. The German business climate index rose to the highest since June 2007 at 106.8 -- above the 106.4 expected and 106.7 prior. Some recent measures of economic growth are showing a slowdown from the blockbuster growth in the second quarter but this data suggests that executives remain buoyant. The ‘current situation’ index hit 109.7, the highest since May 2008, from 108.2. The measure of ‘expectations’ slipped to 103.9 from 105.2.
Precious metals continue their runs higher. Gold climbed more than $6 to $1299.90 while silver hit a 30-year high of $21.44.
Comments
The IFO survey was the big driver for EUR but there were other positive factors as well. France’s Q2 GDP was revised 0.7% higher and Italian retail sales were flat compared to the -0.4% expected.
Strategy
Support at 1.3267 wasn’t even seriously tested and an inverted head and shoulders pattern sparked a rally back toward the 5-month high of 1.3440. The 9-hour moving average crossing above the 26-hour MA generated a short-term buy signal and the short-term RSI is not yet overbought.
Key Levels:
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