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Wednesday, December 2, 2009

Sydney Harbor bridge 75th birthday

The Pond as shrugged off weakness seen during Asian session and after bouncing at 1.6550, the pair has returned above 1.6600 at European session opening to reach intra-day high at 1.6640, right below Tuesday's high at 1.6645.

In case of breaking above 1.6645, next resistance level lies at 1.6700 and 1.6725 (Nov 26 high). On the downside, support levels le at 1.6550 session low, and below there, 1.6500, and 1.6460 (Nov 20 low).

The Pound however, remains in a neutral to bearish bias, according to Abhishek Goenka, technical analyst at India Forex Advisors, who expects sellers to show up at these levels: "The Sterling (GBP) rose to the highs of 1.6647 yesterday in the US session and is currently facing the same resistance(61% Fibonacci and trendline resistance) near 1.6640 levels. Selling around these levels can be expected for the initial target of 1.6560 (cluster support) and then 1.6450(55 daily EMA)."

European markets are going through minor losses after a slightly positive opening, with investors' focus on key U.S.ADP employment report. On FX markets the Pound has stretched to day highs, while the Euro remains in range below Tuesday's high.

Eurostoxx 50 Index trades 0.15% down, while German DAX Index sheds 0.22% and French CAC Index dips 0.21% in the first two hours of trading. In the UK, the FTSE index edges 0.17% down.

European markets could be taking a break after a 4.0% rally from Friday's lows, and before the release of U.S. ADP employment data, which would be closely watched by investors to look for some advance of Friday's Non-farm payrolls report.

Pound stretching higher

GBP/USD has shrugged off weakness seen during Asian session and after bouncing at 1.6550, the pair has soared above Tuesday's high at 1.6645, t reach a fresh intra-week high at 1.6665.

EUR/USD remains trading in a range roughly between 1.5070 and 1.5105 after pulling back from Tuesday's high at 1.5115.

USD/JPY bounce at 86.50 Tuesday's low has extended past 87.20 and the Dollar has reached intra-day high at 87.40.

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