FOREX Daily Analysis 2012-03-08

As we estimated, the US stock market made the bullish correction to the declines from the beginning of the week, and those who expected to see a crashing of the stock got the exact opposite. Wall Street can easily slide to the bearish momentum again but the most important thing here to understand is that the general trend is still bullish, which means that those who missed the rally might buy stocks after the slightest correction.
EUR/USD
The next two days are full with important economic data as today is published the European interest rate, which expected to remain at 1.0% and the investors will look forward to the ECB press conference.
The risings in Wall Street helped the Euro that found a support at 1.31, and if the investors like what they hear from the ECB president, the currency might jump to the resistance at 1.325. However, a break-down of yesterday's low could take the pair under 1.30.

EUR/GBP
The pound failed in breaking through the 200 SMA on Tuesday and the sharp declines in Wall Street that day, pulled the pound down to 1.57. The British currency corrected yesterday and the MPC rate statement today will influence its direction today.
Both EUR & GBP are moving in the same trend versus the USD and therefore the pair EUR/GBP has been stamping in the last couple of months. The pair is approaching the resistance at 0.84, which it broke last month but fell under it few days after the break-up. According to this pattern, the pair supposed to rise to 0.84 and try to break it through again. However, if the pound gets extremely stronger and the pair breaks down the support at 0.83, it might slide towards 0.82.

USD/CAD
The pair reached the target we set at the psychological number 1.0 and the strengthening of the USD has stopped due to the bullish correction of the stocks. The interest rate is published today in Canada, 30 minutes after the ECB press conference begins and like the other interest rates that are published today the Canadian interest is expected to remain unchanged. If the USD continues strengthening against the CAD and overcomes the resistance at 1.0 then the price might reach 1.015. However, if the bearish reversal occurs, the price might fall back to 0.98 again.

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