Light Economic European Data
City Index March 16, 2012 12:00 PM
<p>Light Economic European Data. Although the economic calendar is light with European data today, US dollar is given another chance to continue to strengthen upon […]</p>
Light Economic European Data. Although the economic calendar is light with European data today, US dollar is given another chance to continue to strengthen upon release of US CPI, US Industrial Production and US University of Michigan data due out.
Range: 1.3068 – 1.3098
Euro-dollar closed in New York at 1.3084, after the rate had extended its recovery off earlier Asian lows of 1.3004 to 1.3120. The rate came under pressure into early Asia as euro-yen came under early Tokyo pressure, euro-dollar encountered demand between 1.3075-1.3070 but managed to eventually post a low at 1.3068 before recovering. The rate found initial support at 1.3080 on the pullback before heavier selling into early Europe emerged to squeeze the rate back toward the earlier low. Support remains around the 1.3067-1.3068 area, the area providing resistance for most of Thursday’s European session. Offers into 1.3120 with resistance at 1.3138 and 1.3182.
Range: 1.5695 – 1.5727
Cable closed in New York at 1.5715 with the rate squeezed to an early low in Asia trade of 1.5695 as the rate was influenced by the euro-dollar move lower, in turn led by euro-yen sales. Cable recovered, in line with euro-dollar, to 1.5724 before upside momentum faded. The rate dipped to 1.5707 before retesting highs ahead of the European open. Fresh sales into Europe pressed the rate back to 1.5705, but move again seen meeting decent demand interest ahead of 1.5700. Demand remains in place between 1.5700-1.5695, a break to open a deeper move toward 1.5688 with stronger interest seen placed at 1.5675-1.5670, a break here to open a deeper move toward 1.5662. Resistance seen at 1.5725/30, ahead of 1.5737, with stronger interest noted into 1.5745-1.5750.
Range: 1,655.18 – 1,664.71
Gold prices were firmer in Asia having recovered from the lows seen on Wednesday of 1,634.60. A recovery in the euro-dollar has also helped lift the metal which posted highs of 1,666.70 in New York yesterday, but latest data out of the US continues to point to a more self sustaining recovery and the dollar rally could well continue, with yesterday’s moves largely seen as a bout of profit taking. Gains with a close above the 200-day MA at 1,682.25 are now required to turn sentiment bullish again, but momentum seems to be lacking for the time being and a break down through 1,601 could easily trigger a much deeper retracement towards 1,450. Intraday support is seen at 1,639.80 and 1,534.60 with initial resistance up at 1,666.70 and 1,682.25.
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