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Market commentary- Monday16 April 2007

Market commentary- Monday16 April 2007
Monday, April 16th, 2007 @ 2:22 am by Bogdan Parascanu

Eur-USD thoughts

Euro opened the week at a new high at 1.3580 the highest we have seen since December 2004. After it gained 700 points since the beginning of the year (from 1.2860 on Jan. 12th to 1.3580 established last night in the Asian session) Euro has confirmed the strength some analysts were expecting.

After such a strong push north we must check out what resistance levels we have left, established only last night the 1.3580/1.3600 area is the first important resistance that needs to be cleared, next we have the high of 1.3668 of December 2004, in order to find other resistance swing points we need to go as back as 1995/1996 when the Euro wasn’t in circulation as a publicly available currency. If the push north comes to a halt or we begin to see some pressure on the short side there are some support level worth mentioning; the 1.3411/1.3440 highs made on March 21st and April 5th respectively, then we have 1.3364 December 3rd high, further south we have the 1.3250/1.3260 area February 27th high and March 26th low and even lower we have 1.3070 March 5th low and 1.2860 January 12th low which was the lowest price we have seen this year.

Resistance levels

  • 1.3668 – December 2004 High
  • 1.3580 – April 16th High

Support Levels

  • 1.3483 – March 2005 High
  • 1.3410 – March 21st
  • 1.3365 – December 3rd High
  • 1.3300 – January 7th High
  • 1.3260 – February 27th High

EURUSD 16April

GBPUSD strength

Sterling put in a strong week overcoming some strong resistance levels at 1.9725, 1.9825 and closed on Friday above the 1.9850 area. We have to keep attention to see how price is going to develop around the 1.9900/1.9920 area (all time highs) and next we have the big number 2.000 which should be as much of a resistance level as it is a major psychological target. On the down side we can see the previous resistance turning into support; we have 1.9850 the December 2006 high, lower we have 1.9815 April 3rd high, 1.9725 March 22nd High, 1.9670 Feb. 27th highand even lower we have 1.9590 April 9th swing low.

Resistance levels

  • 2.000 – Important Psychological level
  • 1.9914 – January 23rd High

Support levels

  • 1.9850 – Dec 1st 06 High
  • 1.9670 – Feb. 27th High
  • 1.9590 – April 9th Low
  • 1.9500 – Previous High; Trendline


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