Intraday Market Thoughts

Archived IMT (2011.01.26)

by Ashraf Laidi
Jan 26, 2011 10:46

STELING BOOSTED BY THE UNEXPECTED ADDITION of 1 more hawk at the Bank of Englands Monetary Policy Committee. Martin Weale joined Andrew Sentence in voting for a 25-bp rate hike. GBPUSD seen testing 1.5920, but the downside bias of the past 24 hours remains intact as long as the $1.6060 resistance maintains the right shoulder. Similar formation seen in AUDUSD, whose right shoulder near 1.0030 is expected to trigger fresh selling. EURUSD momentum powers ahead, with a 70% chance of seeing $1.40 next week. Immediate resistance now stands at $1.3850. Remaining medium term bullish w/ EURJPY (one of my 7 trades mentioned in Sunday Workshop) eyeing 113.80. Equities are likely to show the habitual buying on FOMC days before profit-taking may ensue after the 19:15 GMT announcement. An improvement in the FOMC language may further boost yen crosses and maintain the status quo in favor of broad EUR stabilization.


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