Forex Update :-
GBP/USD: Reversal ahead of 1.6745/65 means that rally is over - Commerzbank
The Pound is trading in a range around 1.6300 after its 390 pips sell-off seen last Friday, which ,according to Karen Jones, technical analyst at Commerzbank, slammed the Pound's two-weeks long rally.
Market is now back under bearish pressure, according to Jones, with next support at 1.6200: "GBP/USD’s large key day reversal ahead of 1.6745/65 implies that the 2 week rally is over and the market is back under pressure in its range. We have interim support at 1.6200, 1.6115/1.6085 and failure here should be enough to refocus attention on to the 1.5690/1.5710 support."
On the upside Jones points out to 1.6745/70 to hold potential rallies: "Key short term resistance remains 1.6745/70, the June and September high and Fibonacci retracement – we look for this to hold the initial test. Above here would introduce scope to 1.7040/50."
EUR/USD could reach 1.7500; oil $200 by early 2010 - Kim Cramer
The Euro has remained trading on a steady upside trend from levels below 1.2500 in March to reach 1.5000 in October, and, according to Kim Cramer Larson, technical analyst at Financial Trend Analysis the uptrend is not any close to its top.
On the long term, Larsson expects the Euro to peak at 1.7500 on three to six months time: " We expect the old high on Euro Dollar, at 1.6200, to be tested by year-end. Our long-term frecast within the next 4 to 6 months is 1.75."
Furthermore, oil prices will continue rallying according to Larsson who expects crude oil to reach levels around 190 - 200 in the next 3 to 6 months: "We are very bullish on oil, we saw a break out lately taking out old highs, and we expect crude oil to trade at 190/200 in the next tree to six months."
