EUR-GBP-USDX Market Analysis 1.30
| 31 January 2012
Supporting Video for Market View dated the 31th of January 2012
With a more positive tone coming from the Euro zone, the EURUSD have made its daily corrective move moving lower for the start of the trading day with a low at 1.3075 and worked its way back higher to the current 1.3160 as of this writing. In turn, the spill over in the EURGBP cross have also been positive maintaing above its weekly Pivotal price level of 0.8330 from the previous daily price break of 0.8290 registered last January 23, 2012.
With the GBPUSD intrinsic behavior with this candle formation and steadier prices tend to move higher with daily negative signals. The extensions for the GBPUSD while the USDX moves lower would be at the price levels nearing the 1.5880-1.5920 trading range. Such moves would be determined with the intial target of the USDX at the 78.05 basis point. Although, the trend line resistance R2 at the 1.5910/20 would meet some liquidations and pullbacks whenever this would be accomplished. This is expected within the next two trading days towards the end of the month and the remainding trading days of the week hereof. This would coincide with the time frame for the end of the week's trading. Likewise we, call this move as an 'overlay price directional move' prior to the end of the month and the start of the new month of February. Monitoring the price behavior of the three correlated pairs versus the USD is critical since the closing of the month's trading is at hand with position adjustments being considered.
