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Forex Technical & Market Analysis FXCC Mar 07 2013

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Forex Technical & Market Analysis FXCC Mar 07 2013

Postby alayoua » Thu Mar 07, 2013 10:57 am

Forex Technical & Market Analysis FXCC Mar 07 2013

ECB moving closer to a cut; BoE eyeing additional QE

Economic data coming out of the Eurozone in recent months has been rather poor but even though the ECB has still limited room to cut rates, it is generally not expected to make this move at the upcoming meeting. The BoE´s monetary policy decision is the source of more speculation this month as the minutes from the last meeting revealed that three MCP members expressed their support for additional QE. Even though the majority of the analysts polled for the special forecast report expect the ECB to cut interest rates sometime this year, they rather do not see the central bank making this decision in March. "The markets are nervous about the recent elections results in Italy as well as about a possible QE decrease by the Fed so I do not think Mario would want to add fuel to the fire," Adam Narczewski suggests, while others point also to the successful announcement of the OMT as a factor reducing the need for a cut. Only Steve Ruffley sees the ECB bringing "rates to 0.5%, in line with that of the BOE" on March 7, as "the economic horizon for the EU remains very treacherous."

Attention will center on the ECB press conference following the interest rate announcement, during which president Mario Draghi might, in the opinion of Bill Hubard, "revise inflation projections to the downside." He is also likely to "try and balance between the current economic situation which is quite depressing, and the optimism for growth in H2 2013, coming now from higher business confidence, mostly in Germany," as Yohay Elam believes. The outcome of the BoE´s March monetary policy meeting is less clear for the experts as the minutes from the January meeting surprised with the information that three out of the nine MPC members (including the governor Mervyn King) voted in favor of an additional expansion of the asset purchase program by £25 billion to £400 billion. "The downgrade by Moody's, together with the growing support for more QE and the lack of fiscal stimulus from the government will likely lead the MPC to action, even though the effects of QE on the economy are questionable," Yohay Elam predicts, but the majority of the economists polled believe the expansion could be carried out later in the year.
https://support.fxcc.com/email/technical/07032013/

Forex Economic Calendar :
2013-03-07 12:00 GMT | United Kingdom. BoE Interest Rate Decision (Mar 7)
2013-03-07 12:45 GMT | E.M.U. ECB Interest Rate Decision (Mar 7)
2013-03-07 13:30 GMT | United States. Trade Balance (Jan)
2013-03-07 21:30 GMT | United States. Bank Stress Test Info

Forex News :
2013-03-07 05:51 GMT | GBP/JPY still in uptrend - JPMorgan
2013-03-07 05:17 GMT | BoJ holds steady; Cable prints fresh lows
2013-03-07 04:55 GMT | NZDUSD bearish potential intact - Saxo Bank
2013-03-07 03:44 GMT | USD/JPY slightly to the downside as no surprise from BoJ

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EURUSD :
HIGH 1.29963 LOW 1.29686 BID 1.29911 ASK 1.29916 CHANGE 0.2% TIME 07:57:45

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OUTLOOK SUMMARY : Down
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : High

MARKET ANALYSIS - Intraday Analysis

Upwards scenario: An evidence of uptrend formation might be provided if the price manages to surpass key resistive structure at 1.3009 (R1). Price evaluation above this level would put in focus our higher targets at 1.3038 (R2) and 1.0388 (R3). Downwards scenario: Instrument is moving with a ranging momentum on a slightly shorter timeframe and might retest our next support level at 1.2965 (S1). Market decline below it might lead to the further easing towards to next targets at 1.2938 (S2) and 1.2910 (S3).

Resistance Levels: 1.3070, 1.3090, 1.3113
Support Levels: 1.3045, 1.3022, 1.3000

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GBPUSD :
HIGH 1.50175 LOW 1.49669 BID 1.50019 ASK 1.50031 CHANGE -0.1% TIME 07:57:46

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OUTLOOK SUMMARY : Down
TREND CONDITION : Down trend
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : High

Upwards scenario: Next actual resistance level is seen at 1.5043 (R1). If the market manages to surge higher, our focus would returned to the next target at 1.5075 (R2) and further uptrend formation could be exhausted at 1.5107 (R3) intraday. Downwards scenario: Technical indicators are bearish and if the price manages to break our next support level at 1.4968 (S1) we would expect further depreciation towards to our next targets, located at 1.4935 (S2) and 1.4904 (S3).

Resistance Levels: 1.5043, 1.5075, 1.5107
Support Levels: 1.4968, 1.4935, 1.4904

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USDJPY :
HIGH 94.115 LOW 93.792 BID 93.926 ASK 93.932 CHANGE -0.15% TIME 07:57:47

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OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium

Upwards scenario: Consolidation pattern formation likely comes to the end and appreciation above the resistance at 94.13 (R1) might start of a new step of the ascending structure. Our intraday targets today are placed at 94.42 (R2) and 94.70 (R3). Downwards scenario: Local low formed today is pointing to a short-term key support at 93.77 (S1). Penetration below it might change near-term tone to the negative side and expose our initial targets at 93.47 (S2) and 93.19 (S3) later on today.

Resistance Levels: 94.13, 94.42, 94.70
Support Levels: 93.77, 93.47, 93.19

Source: FX Central Clearing Ltd
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alayoua
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