17 Jun 2009

GU Analysis:
DOW extended its pullback Tuesday after news of a seventh straight monthly drop in industrial production overshadowed better-than-expected reports on home construction, building permits and inflation.

UK CPI rose to expected 1.9%, pushing the pound up during European trading below falling from 1.645 t0 current 1.636.

Today, the earliest and most important indicator for the British job market, Claminant Count Change. Claims are predicted to rise to 61.8K. The British job marjet still hasn’t reached a bottom. The unemployment rate is on the rise. It’ll be released at 1630 SGT.

On the technical side, looking at the 1-hour chart, there is a squeeze 1.635 and 1.640.

Support is at 1.61875, then 1.6007. Resistance is at 1.655, then 1.6705

Trend: Bearish, with strong support at 1.61875, unless it clear resistance at 1.6705