Market Overview

Discussion in 'Forex' started by nycfxproptrader, Apr 28, 2004.

  1. The decline in gold today has accelerated on the back of
    the China rate hike speculation.Gold has dropped another notch lower through $389.00 support to trade to $384.90.

    The USD rally in response to the falling gold price has
    seen USD/JPY finally test 110.00. Offers are still seen towards the 200-day moving average at 110.25, but stops are expected above.
    Now prices are in a weak intraday buy, having probed above
    key resistance at 109.90 highs, but not the 200-day MA at 110.25.Dailies still overbought so not eager to get long here.

    EUR/USD tested the 1.1835 level before bouncing mildly. Dealer have one eye on USD/JPY and it quick pullback after a probe above 110.00. This may prompt some EUR/USD short-
    covering. Heavy selling in the metals is lifting the dollar across the board this morning, an unexpected catalyst. 1.1880 is resistance now on rallies.

    Cable has plunged to test 1.7750, a 61.8% Fibo retracement point of the climb from last week"s 2004 low of 1.7628 (Apr 22) to 1.7970/75 (Asian session high), after losing its 1.78 handle.
    A clear break below 1.7750 opens up additional downside risk towards 1.7628, with interim support points located at 1.7730 (Monday"s Asian session high),
    1.7670 (Monday"s Asian session base), and 1.7645 (last Friday"s post-US durable goods low).

    Very key numbers out tomorrow .