Intraday Market Thoughts

Archived IMT (2011.01.12)

by Ashraf Laidi
Jan 12, 2011 17:44

USD SOLD OFF AGGRESSIVELY GBPUSD as oil and equities extend rallies to the benefit of CAD, AUD and GBP. regains the $1.56 trendline resistance prevailing since November. A NY close above $1.5630, would extend the gains towards the 200-day MA of $1.5730s, which is the expected convergence point of the 55 and 100-day MAs. GBPUSD shatters the $1.56 trendline resistance to add nearly 200 pips and break through the 100 and 55-day MAs. $1.5750s appear to face intermittent selling for $1.57 objective. This GBP strength is likely to extend further against EUR and AUD, with 0.8150 and GBPAUD also appears to be a positive play based on Aussie's flood damage, the RBA's expected reluctance to tighten further and the stickiness of UK inflation shutting the door to any QE3 this year. GBPAUD eyes interim targets at 1.5990. Gold may extend gains towards $1400, but shorts see more downside at those levels with preliminary target at 1355, followed by 1310.


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