Euro and Gbp again turning bearish

Fri, Feb 20 2009, 02:00 GMT
http://www.fxstreet.com

Wide movements seen in majors Thursday as uncertainty continues ruling. Early European session optimism supported by a German plan to support Eastern Europeans banks, failed to feed risk appetite. Bad macroeconomic U.S. data send stocks down under November previous lows, and investors quickly return to dollar. Gold bullish trend continues, with the commodity reaching 988 an ounce intraday high, very close to the historical maximum at 1.031.

Stocks in Asian session are falling on concern rising bad-loan costs will weigh on profits at financial companies, outweighing a gain by resource shares after oil surged from under U$ 35 a barrel. This suggest more dollar gains are about to be triggered.

EUR /USD – Consolidating just under the 1.2700 level, the pair reached 1.2760, the daily ascendant trend line broken past Tuesday. Daily close under another key resistance level 1.2725, reinforce dominant bearish trend. Resistances for Asian session will be at 1.2700 1.2730 zone, 1.3760 and above the zone around 1.2800. First important support is at 1.2647, followed by 1.2610, 1.2558 and 1.2513.

GBP/USD – The pair reached as far as 1.4446, forex trading before quickly coming down. 4 hours charts indicators point for bearish continuation with supports at 1.4245 1.4210, 1.4177 and the strong congestion zone around 1.4135. Under this last, expect more bearish momentum in the pair. Resistances placed at 1.4320, 1.4355, 1.4410 and 1.4460.

USD /JPY – Reached past 94.00 and remains above, addressing to the key forex trading resistance level 94.63. Daily confirmation above that point, will confirm longer term upside continuation. Resistances above that level, will be at 94.92 and 95.30. Under 93.95 the pair will find supports at 93.50, 93.10 and the 92.60 zone.