Forex News | Currency News by Forexlive

The big manufacturing index has come in at -14, which is close to expectations, and non-manufacturing has also come in at -14, which is slightly better than expected. These are the highest results in almost 18 months.

Not a pair I’ve been watching at all but the trade certainly does make sense. EUR/CHF has broken back below it’s previous major low at 1.43 and EUR/JPY has formed a beautiful basing pattern on the break above 125.50, ergo buy CHF/JPY. The 61.8% retracement of the 91.05/81.75 fall came in at 87.50 and that was the break-up level yesterday. Once through there it accelerated sharply and looks set to test the 91.05 high very soon. Once again a buy-dip strategy looks like a winner here.

2.5% is bang on the RBA’s preferred inflation rate. AUD/USD unchanged at .9160.

The daily high from early January is the next hurdle facing the USD/JPY bulls but with momentum heavily in their favour, I suspect that this level will also be taken with relative ease. EUR/JPY has also put on a little spurt but there is some decent technical resistance looming at 127.00 and above.

You can win a much sought after ForexLive T-shirt if you are closest to tipping the exact NFP number tomorrow. Please click here and put your best guess in the comments section and try to ensure that your number hasn’t already been taken.

Thanks to Alexander for the heads-up that the IMF has come out and said that the NZD is between 10% and 25% overvalued. The NZD/USD fell from .7110 to .7070 on the comments and the AUD/USD fell 20 pips. I’ll add some links as soon as I get them.

The AUD/USD has already dipped 20 pips this morning which is not overly surprising given that there is a fairly long weekend ahead and as we know, traders like to unload some risk before the weekend just in case something happens. Trailing stops below .9130 are probably dealer’s first target.

It is obvious why so many players had their stop-loss orders placed above 125.50 when you look at the attached chart. A nigh-on perfect inverted H&S pattern which suggests that a base is now in place. Buying dips back towards the break-up level with fairly tight stops makes perfect technical sense. Next resistance levels are a previous pivot at 127.00 and the 100-day MA at 127.60. Definite bullish bias here so buying dips is my strategy.

By Sheila Mullan

NEW YORK (MNI) – The New York Fed late Wednesday said it had
released additional information on the Maiden Lane Portfolios.

The Bank issued a statement saying it has “expanded the information
that it makes available to the public related to the Maiden Lane
portfolios” and that the “new information includes nearly all of the
holdings of Maiden Lane LLC (ML) with the exception of residential whole
loans as that would violate individual borrowers’ privacy and all of the
holdings of Maiden Lane II LLC (MLII) and Maiden Lane III LLC (ML III).”

The information had been contained in a few long documents made
available by the Fed, but one of the documents alone amounted to 131
pages, so there were lots of details including the description of the
affected debt securities, the amount of principal/notional amount and
the CUSIP number of the security.

The links are below:

http://www.newyorkfed.org/newsevents/news/markets/2010/ma100331.html

Analysts contacted by Market News International had just become
aware of the deveopment and broader details thus had no comment
immediately as studying the affected securities; it was the same
situation with debt fund managers.

– By Sheila Mullan, email: smullan@marketnews.com, Tel: 212-669-6432

** Market News International New York Newsroom: 212-669-6430 **

[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$]

Firstly it was USD/JPY which started to exhibit some impressive bullish momentum and now crosses like EUR/JPY, GBP/JPY and particularly CHF/JPY look to be reversing their medium term downtrends. EUR/JPY has posted a picture perfect inverted Head-and-Shoulders and any pullbacks towards 125.50 should be considered dip-buying opportunities.

Good luck today

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