2 June 2009

0800hrs SGT

The Dow rallied again and comodities prices rose. All these point to an economy that is recovering or at least it seem to be.


FSTE rose and Manufacturing PMI show improvement. This is the second set of important UK data after Halifax HPI. Today the data to look for is Construction PMI at 1630SGT.


GU gave an impressive run to almost 1.65 yesterday. The pound has been too oversold since the credit crunch down from its high of >2.000 to low of abt 1.35, it has potential to climb to 1.72, a 50% retracement. Coupled with the overbought USD during the crisis and the trillions of pump in, the dollars has significantly weaken.


Looking immediate at the resistance it is at 1.658, then 1.703. CCI as mentioned, has been short lived for short. It has rebound up from the lower BB and is heading up.

Taking a look at the hour chart, and using Fib retracement, support is at 1.638 and 1.630.

Overall trend is up, but may move down for some consolidation.