Week of Feb19

Written by Research | 17 February 2010

UPDATE : FX Majors & Cross lost momentum before the FED Rate Hike

The UK unemployment has been the limelight story that the increase on jobless claims have been dragging the growth on the economy. However, in spite of the news the GBP/USD has somehow recovered from their lows 1.5532 to the recent high of 1.5814 for the week of Feb 19 and is currently holding regardless of this news on unemployment at 1.5780 as of this writing.

However, after careful analysis and with this update the momentum for the upward movement has been lost when the GBP/USD went back to its price level of 1.5710 and the EUR/USD at 1.3624 respectively. The likely scenario to break and continue its down turn may eventually happen when the correction for the USD may seem to be over as mentioned that it was only on a corrective mode. The EUR/GBP which was indeed favorable had gone back down to it initial support for the week at 0.8675. If and when it does break the 0.8655 a continuation of the down turn will be made. the currency market is in a wait and see attitude when it stall and tries to break their support levels.

With the USD correction which led the Gold prices to top at US$1,122.15 but retreated lower while waiting for the housing numbers which is expected higher for housing starts and home buildings today in the market news. Meanwhile, the EUR/USD also recovered from their lows of 1.3531 from last week and now is working at 1.3720 from a recent high of 1.3788. Although, we are looking at a probable higher numbers back to the initial resistance of 1.3880 which happens to have some legs on the recovery after the holiday thin markets in Asia. But if the volumes and momentum would be lost then the opposite is pretty much in the making. As what is currently behaving for the prices as of this writing. that is why it was necessary for an update to be writtten in support of our MarketView & analysis. Although, we did mention that this correction was only temporary.

The USD/JPY has just set a nine-day high at 90.92, up from today's opening price of 90.19. The pair has gained almost 140 pips from its seven-week low on February 4 at 88.55. And is currently at 90.77 as of this writing.

The EUR/JPY has followed suit and just hit a nine-day high at 124.82, up from the opening price of 124.12. The pair has gained over 400 pips from its 11-month low established on February 5 at 120.70 and is currently at 123.75. the same holds true for a break for the EUR/GBP is what the market is carefully looking at. The final movement will then be made this thursday and Friday.

A more accurate analysis and forecast for the week coming can be found on the 4Cast analysis which also includes the the aftermath of a rate hike and the would be reaction of the FX market. However, viewers need to be an approve registered user to view its content.