Candlestick configuration indicates a bullish EURUSD in the medium term

[RTFX-Trading]

Candlestick configuration indicates a bullish EURUSD in the medium term

What's new:
Switzerland: pessimistic proposals from President of the SNB Jean-Pierre Roth.
UK: tax increase, British government deficit presented at 12% of GDP.
USA: Wall Street ended on a mixed note.
Germany: Government admits that Germany might suffer an unprecedented recession.
Germany: the new public sector borrowing will reach 5.5% of GDP.
Japan: Major Insurance Institute place future investment in JGB.
IMF: global economy is experiencing a serious recession, slashed growth forecasts.

Aujourd'hui:
09h28 Germany: PMI Mfg, exp 42.5, previous 42.3.
09h58 Euro zone: PMI Service, exp 41.0, previous 40.9
10h00 Euro zone: Feb Current Account, previous -12.7B.
11h00 Euro zone: Industrial New Orders, exp -2.40%, previous -3.40%.
12h00 UK: CBI Orders, exp -54, previous -58.
14h30 US: Weekly Jobless Claims, exp 635'000, previous 610'000.

Overnight Rates & Indices:

EURUSD:  1.2957 – 1.2911.
USDCHF:  1.1701 – 1.1666.
GBPUSD:  1.4686 – 1.4610.
EURCHF : 1.5123 – 1.5093.
USDJPY:  98.75 – 98.09.
DowJones 7’887 -1.04%
NASDAQ:  1'336 +0.14%
S&P 500: 844 -0.77%.
Nikkei:  8'845 +1.35%
Crude Oil: $48.43 -0.86%.
Gold : $891.40 +0.25%.

Commentaires:

         
The Swiss franc is battered this morning after the words of President of the Swiss National Bank Jean-Pierre Roth. He stated that the bottom has not yet been reached and anticipates a growth of 0% in 2010 in Switzerland. The SNB manages for the moment to prevent an appreciation of the Swiss franc against the euro through interventions on the market changes. The EUR / CHF should remain stable.

   
Yesterday, the pound sterling fell against its major rivals following the budget speech by British finance minister Darling where he increased taxes and introduced a draft budget of the British government of £175 billion, or 12% of GDP!
General Motors Corp said it would probably not be able to make a $1 billion debt payment due June 1 because it expects to be in the process of restructuring its debt through a voluntary exchange or bankruptcy court by that point. The action has fallen by 2.35% to $ 1.66.

There is nothing much to expect today from the economic calendar of events. RTFX Trend remains USDCHF bearish. Regarding the EURUSD pair, the current configuration of the candlesticks on the daily chart is quite interesting: A bullish move following ‘harami’ may indicate a rise in EURUSD. Furthermore, our technical indicators signaled a ‘low zone’ and today, RTFX Trend is bullish. The combination of these factors leads me to opt for an increase in the medium term for EURUSD. 

Good Day.

Nicolas Longchamp
RTFX Ltd
Head Office

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