Pounds to USD 5 Nov 2009
Cable mirrored the euro dollar yesterday, ending the currency trading session with a long legged doji which failed to breach the 1.67 price level, and reinforcing once again this strong area of potential resistance, which is now increasingly well developed and providing a strong barrier to any move higher. However, despite this apparent technical issue, the low of the day found good support from both the 14 day and 9 day moving averages, which suggest that the bullish momentum remains intact for the time being, and until we see this difficult area breached with a break and hold of at least 3% above the 1.67 level, then we cannot be sure that any breakout will be sustained. A move above the recent ‘fakeout’ at 1.70 would be sufficient to confirm that the upwards trend is likely to continue in the short term, and with the Non Farm Payroll data due later, this could provide the necessary impetus to break higher.
Today’s fundamental news on the economic calendar is, of course, dominated by the non farm payroll data and unemployment rate in the US which I have covered in some detail on the main eurodollar site. Meanwhile in the UK the markets are waiting for the PPI Input data which measures the change in the price of goods and raw materials purchased by manufacturers. This data is important as it is released ahead of CPI and is considered a leading indicator of consumer inflation. The forecast figure is for 1.5%. You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.
R1: 1.6653 S1: 1.6472
R2: 1.6735 S2: 1.6373
R3: 1.6834 S3: 1.6291
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