Eurozone Current Account
The eurozone current account was much worse than expected at -8.1B versus 2.9B and the previous showing of 2.3B but the market was unaffected by the release.
Swiss Industrial Production q/q
Quarterly Swiss industrial production came in at 6.4%; better than its survey of 5.1% and prior reading of 3.4%, but the market had a very limited reaction.
EURUSD breaks through the 100 hour MA support and scoots lower
The EURUSD’s 100 hour MA was breached at the 1.3729 price and the price has scooted to a low of 1.3711. The price should now find resistance against the 1.3729 level and should stay below the 1.3737 level (close from yesterday). If the hourly bar closes below the 1.3729 price, the downside should look to target the 200 hour MA at the 1.3679 level currently with interim support at the 1.3700 level (see chart above). Watch 1.3729 to hold corrective resistance.
Japan’s BSI Manufacturing
Japan’s BSI All Industry Index came in down -2.4% quarter over quarter for the 1st quarter of 2010, while the Large Manufacturing Index came in up 4.3% quarter over quarter, however much less than the prior rise of 13.2%. Although the USD/JPY pair has maintained a bid in March, it has not been unable to break the 91 handle. A move toward that level would intersect with trendline resistance and a break could lead through the 200 day moving average and toward 2010 (calendar) highs. It is also noteworthy that the pair has found support recently at the intertwined 21 day and 100 day moving averages.
USDCHF moves down toward 200 day MA at 1.0491
The USDCHF is moving back down toward the 200 day MA support at 1.0491. A move below this level will likely pressure the USDCHF further. However, the higher the CHF goes (versus EURCHF and USDCHF) the better the chance for intervention. That intervention level would be the new tolerant level for the EURCHF. The EURCHF has has been pressured today and is trading at the 1.4477 level, 150 pips below the old floor at 1.4630.
USDCAD on the way to parity?
The 1.0100 level gave way and the price is down testing the next support at the 1.0074 level. This level the last time the price was this low, was a ceiling then floor. A move below this level has little in the way of support until the parity level. Of course the market will target this and likely will find buyers against the level with stops on a move below. Fundamentally, with oil higher and growth numbers better, this benefits the CAD$ and that lowers the USDCAD.
GBPUSD bounces through resistance levels as trend resumes
The GBPUSD has moved up more sharply then thought after correcting 61.8 of the days range. The move is not normal, but that is par for the course given current trading environment. Support should now be found against the 1.5351 and then 1.5332. A break of 1.5380 starts to look for the 1.5421 area.
USDJPY breaks through the support at the 90.34
The USDJPY fell below the 200 hour MA support and continued the fall until finding support against he 90.09/13 levels. 90.09 is the 100 day MA support. The 90.13 level is the midpoint of the range from Feb 19th to the low on March 4th. A break of this support area would be bearish and should lead to further momentum selling with 89.98 and then 89.66 the next targets. Resistance now at 90.34.
Loading ...
