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Market Commentary for Wednesday 5th March 2008

Market Commentary for Wednesday 5th March 2008
Tuesday, March 4th, 2008 @ 9:12 pm by Vito Henjoto

Don’t you miss volatility?

I Do miss Market Volatility! A volatile market for Currency Traders, would relate to a kid with candy, so much to do in so little time. The Adrenaline pumping, Calculating charts in a frenzy is much much better than staring at the charts not going anywhere. These few days is just like watching primary kids having a Table Tennis match, tedious and boring.
Market has been quiet this week, with EUR/USD and GBP/USD still trapped in a range market conditions. Momentum to break either way for them would probably happen today, with a barrage of data to be released today.

We have three market moving data today starting with UK Services PMI and from the US we have ADP Non farm Employment Change an ISM Non Manufacturing. Whether or not The Dollar will continue to recover would be highly dependent on data releases this week.

Also we just had the GDP Release from Australia, the result was 0.6% below expectations of 0.8%. The Drop in GDP, is countered with a strong Domestic Demand, therefore the likelihood of RBA doing another hike is still high.

GBP/USD Outlook

Nothing Major for the Cable this week Market is still trapped in a triangle which should be breaking out hopefully today, Looking at the Daily charts and 4 hourly Charts A break to the downside is more likely. Especially with cable keep making lower highs the past few days.

Resistance Levels

1.9850 – Daily Pivot
1.9889 – R1 Daily
1.9929 – R2 Daily
1.9968 – R3 Daily

Support Levels
1.9810 – S1 Daily
1.9771 – S2 Daily
1.9731 – s3 Daily

EUR/USD Outlook

Euro is more or less in the same condition with Cable, With the pair losing momentum to push upwards and not enough seller to bring it down either.

The Pair is seriously very overbought. Therefore a correctional move this week is more of a possibility rather than pushing on for new highs. But it would all depends again on data releases this week from the US. Indications of How bad the economy is over there is key to the movement of this pair.

Resistance Levels

1.5209 – Daily Pivot
1.5245 – R1 Daily
1.5275 – Historical High 3rd March
1.5285 – R2 Daily

Support Levels
1.5169 – S1 Daily
1.5133 – S2 Daily
1.5093 – S3 Daily

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