Not Much Has Changed...

Daily Forex Fundamentals | Written by Crown Forex | Dec 10 08 14:40 GMT |

With a rather fundamental free calendar today, movements haven't been much in the markets after the initial approval of the US auto makers bailout plan that somewhat increased investor's risk appetite to help majors incline in the markets. Compared to other majors in the markets, the euro experienced a bumpy ride after the fundamentals released from the Euro Zone showing that industrial production in France and Italy have dropped alongside the GDP reading from Italy showing that the economy has contracted during the third quarter. We see the Euro has fallen to record a low for the day so far at 1.2902 which is the 14 day MA on the four hour chart. This resulted in a significant rebound where the 15 nation currency is currently trading at the 1.2980s level as it is facing difficulties in breaching the 1.2990 resistance level. Technical indicators still show the potential for upside movements, yet the breach of the mentioned level will not be seen unless the pair declines to 1.2890 to gather enough bullish momentum and break the level. As for the Royal pound, trading is still within a contracting triangle where it has failed to breach the key resistance for the triangle at 1.4864 which is the high for the day. A Bollinger band at 1.4790 is also limiting further losses for the pair as it seems like the volume of trading is weak. The trend will continue within the triangle since the relative strength indicator is showing a neutral trend but the ADX indicator is still showing signs of a weakened upside movement. A four hour close above the key resistance that is now at 1.4850 and matches with the 50 day MA on the four hour chart will help the pair target higher levels near the 1.49 - 1.4915 levels. We still see the greenback advancing versus the yen after rebounding from the 92.00 support level yesterday taking the pair to the 92.70 levels. Trading will most likely remain around these levels as technical indicators remain neutral with no signals of divergence to the downside or strength to the upside that could take the pair to 93 as an initial target. The pair might have to correct to the downside to 92.30 at the very least to gather enough bullish momentum and reach the previously mentioned target. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.