EUR-USD Update US Session 6/7/2011

The EUR-USD firming, stocks rising in US session, European stocks rose in Euro session, Japan stocks rose in Asian session causing a weaker USD. In 1hr time-frame Resistance is at 1.4837. EUR-USD tested near pivot level 1.4547 before advancing but has yet to test resistance.

Strong data out of Europe was also a catalyst for the upward move. Eurzone Retail Sales for April 11' (YOY) came in at 1.10% while the print was expected to be -1.70% and German Factory Orders April '11 (MOM) came in at 2.8% vs -2.7% that was expected. Bernankee is set to speak later in Atlanta (19:45GMT today).

OPEC meeting on Wednesday in Vienna. OPEC is expected to raise it's quota - the amount of oil it produces. The amount of the production increase for crude oil by the cartel will be decided at the meeting. There are some member countries that are against raising production so there will likely be a conflict at the meeting.

Crude Oil 1hr technical analysis
Crude encountered resistance R1 and fell sharply. Then tested pivot level in volatile trade. After a ruff battle began to trace below pivot and has yet to find support or put any pressure on the pivot. Trend is currently down but appears oversold.

(click chart below to zoom 1h EUR_USD)


(click chart below to zoom 1h crude_oil)