Euro/US Dollar
(1.2266) - 08:26 GMT, Sep 14, 2004
EUR/USD - the single currency bounced back, in lock-step with the U.S. treasury markets. It may retest the 1.2306 top, but may still be susceptible to a pullback to 1.2200 area thereafter. The rest of the short-term view kicks in thereafter -- if 1.2200 level is taken out, then watch the single currency gravitate lower towards the mid-1.2100s. In the near-term, we turn more bullish once the single currency goes above 1.2310 -- which has indeed shaped up to be a firm trendline technical resistance. We reiterate further, that there is no real reason for bulls to celebrate until 1.2530 hypothetical resistance is taken out. This level is shaping up to be the major resistance in the current investment cycle. Take out 1,2530 top in turn, and you get a run-up to the 1.2925
high we saw earlier in the year.
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Recommendations:
Stand aside.
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British Pound/US Dollar
(1.7987) - 08:26 GMT, Sep 14, 2004
GBP/USD - the currency pair is firmer, as the market reassess the odds of further BoE rate hikes down the road -- a consequence of mounting inflation pressures -- which could provoke a further 25 basis point hike this year. The currency may rise back to 1.8040/50, but watch still for a decline to 1.7920 area thereafter. The next upmove should focus next at 1.8100 - 1.8150 resistance area. The uptrend remains suspect until it takes out 1.8100 - 1.1850 resistance band.
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Raise your trailing stoploss to 1.7960. just below crucial support.
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Recommendations:
Bought GBP at 1.7833. Move stop-loss from 1.7910 to 1.7950. Keep profit target at 1.8250.
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US Dollar/Japanese Yen
(109.82) - 08:28 GMT, Sep 14, 2004
USD/JPY - the currency pair fell further than expected, but should find support at circa 109.60. It may yet rise back to 110.50/60 area thereafter. No change in the view from there -- the pair should resume the downtrend after completing the multi-week consolidation phase. The next targeted downside level may be 108.75 base, but any breach of support should bring about 107.00 quickly.
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Recommendations:
Stand aside.
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US Dollar/Swiss Franc
(1.2574) - 08:28 GMT, Sep 14, 2004
USD/CHF - the currency may drift lower further towards 1.2550, but should rally back towards 1.2650 - 1.2670 thereafter. But it should reinstate the downtrend thereafter, and may be bound for 1.2380 next. The downtrend reassert soon -- expect further declines to 1.2200 further out.
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Recommendations:
Stand aside.
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US Dollar/Canadian Dollar
(1.2991) - 08:27 GMT, Sep 14, 2004
USD/CAD -- the currency pair has been to the 1.3020 target and may pullback further towards 1.2980/70 -- it may rally further towards 1.3050/60. Nonetheless, this rally from the 1,2850 low is countertrend -- the downtrend should resume thereafter, and may lead to the 1.2680 base further out.
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Recommendations:
Short USD position from 1.2906 was closed at 1.2987 stop-loss.
Stand aside
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Australian Dollar/US Dollar
(0.7003) - 08:29 GMT, Sep 14, 2004
AUD/USD - the currency should see further upmove to .7020/25, bringing on overbought conditions. The currency should fall back thereafter, probably to just .6940, and not to the .6900 - .6885 support area. A rally toward .7080 - .7100 is still expected to resume thereafter.
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Protect your longs: raise your trailing stop to .6930.
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Recommendations:
Bought AUD at 0.6909. Move stop-loss from 0.6930 to 0.6970. Keep profit target at 0.7225.