Crude oil rose further to as high as 103.74 last week but failed to sustain above 103.37 resistance and retreated. Initial bias remains neutral this week for some consolidations first. Nonetheless, near term outlook will remain bullish as long as 98.30 minor support holds. We'd expect rise form 74.95 to resume sooner or later. Above 103.74 will target 114.83 key resistance next.
GBP/USD breaks below the 1.5705 low and reaches the 1.5682, as the markets open. The currency pair is on a downside pressure due to the Eurozone members, not coming to a decisive plan to meet the debt crisis. Intraday bias remains on the downside, as long as the 1.6200 minor resistance line is not broken.
EUR/USD breaks the 1.4054 major support lines and hits the 1.3970 low. The Euro received some relieve this morning by the German Constitutional Court, it rejected the lawsuit of blocking Germany from participating in further Eurozone bailouts. The German court ruling will just provide short-term relief, the EUR/USD is under intense downside pressure.
GBP/USD Trading to the Downside, Risk Appetite Low
Safe haven currencies are bullish today, as risk appetite is down. GBP/USD has been trading on the downside, since reaching the 1.6615 high. In this morning sessions, the currency pair dropped to the 1.6410 low as concerns of global economic downturn is making headlines. Intraday bias remains on the upside, as long as the 1.6110 minor support line is not broken.
Most major Forex markets are trading in tight narrow ranges following the expanded range trade on Friday triggered by the release of the U.S. Non-Farm Payrolls report. With Non-Farm Payrolls coming in well below pre-report guesses and the Unemployment Rate dropping unexpectedly, on the surface the report appeared to be bearish for the Dollar, but the response by the U.S.
EUR USD is struggling with 1.3569 minor support line. Intraday bias remains on the upside, as long as the EUR USD is able to close above the 1.3569 minor support line. If the EUR USD closes below the 1.3569 minor support line, it will indicate a change of sentiment to the bearish side.
Crude Oil, Energy and Food.....is This 2008 All Over Again?
E-Mini S&P Forms Weekly Reversal Top; Move Downside Indicated.
The shedding of risky assets put downside pressure on the December E-mini S&P 500 this week, leading to the formation of a closing price reversal top. This pattern often leads to the start of a 2 to 3 week break of about 50% of the last rally. A move through 1191.50 is needed to confirm the reversal top; otherwise it could go into sideways mode.
U.K. Economy Cooling; Pound Downside Target Remains 1.5113
Concerns over a slowdown in U.K. manufacturing growth and mortgage market worries helped pressure the British Pound. Sterling investors seem to be pre-occupied lately over the new austerity measures and tax hikes. Many still feel the economy will slump because of these two programs.