Risk Appetite Hits Resistance, Euro Rebound Fades

[Forex-Outlook]

The rebound in risk appetite from EU/ECB's emergency plan was impressively strong where we have 5.16% rise in FTSE 100, 5.3% rise in DAX and 9.66% rise in CAC 40. However, the momentum somewhat faded in US session as DOW's 3.9% rebound was limited by 55 days EMA resistance at 10800 level. Crude oil's recovery was relatively weak comparing to stocks and also failed to sustain above 78 level. Gold on the other hand is trying to regain 1200 level. In the forex markets, Euro pared most of its earlier gain against major currencies while dollar index staged a strong rebound from intraday low of 82.93 and is back above 84 level. Yen crosses are also way off today's intraday high.

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