Forex Commentary: GBPUSD levels, 9th March 2011

Forex Commentary:

The euro failed to retest a recent four-year peak against the dollar on Wednesday, and analysts said persistent worries about the fiscal health of several euro zone countries may limit further gains.

The euro hit a four-month high above $1.40 this week as markets began pricing in an April euro zone interest rate hike. But it retreated a day ago amid concern about the ability of indebted countries to withstand higher borrowing costs.

The EURUSD last traded at $1.3904, unchanged from late Tuesday. It bounced off technical support in the $1.3860 area but was still off the day’s high of $1.3942.

The greenback edged up 0.1 percent vs. the Japanese yen, and the Sterling rose 0.2 percent against the dollar to $1.6203. The NZDUSD slipped 0.3 percent after the central bank cut interest rates by 50 basis points.

Trading Setups / Chart in Focus:

GBPUSD

The GBPUSD is currently stuck in a range between about 1.6300 and 1.6020. We can see resistance actually comes in at about 1.6275 to about 1.6335, while support sits down near 1.6020.

Note the fakey setup that occurred near the top of the range near 1.6300, last night price tested the event area of the breakdown level of the fakey. Price has the potential to move into 1.6020.

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Other Markets:

On Wall Street today stocks closed mostly lower after a weak outlook from Texas Instruments weighed on the Nasdaq and pushed an index of chip makers below a key technical level.

The Dow closed lower by 1.29 points, or 0.01 percent, the S&P 500 lost 1.80 points, or 0.14 percent, and the Nasdaq lost 14.05 points, or 0.51 percent.

Upcoming important economic announcements: 3/10/2011

4:30am EST: Britain – Manufacturing Production m/m
7:00am EST: Britain – Asset Purchase Facility
7:00am EST: Britain – Official Bank Rate
Tentative: Britain – MPC Rate Statement
8:30am EST: Canada – Trade Balance
8:30am EST: United States – Trade Balance
8:30am EST: United States – Unemployment Claims
9:00pm EST: China – CPI y/y