FXstreet.com (Barcelona) – The Dollar has declined back against the Swissy to test 1.0370 level (MA55 hourly chart) after reaching intra-day high at 1.0420 in the early American session. Currently the pair is trading around 1.0360/70, 0.30% above today's opening price action at 1.0337.
Kshitij Consultancy Service Team comments: “Swiss tested the Resistance region 1.0385-0400 mentioned earlier and is now trading near this Resistance region. As the overall sentiment remains bearish, we expect this Resistance region (1.0385-0400) to hold during the US session and might see a downmove towards 1.0300-0280 in the coming sessions/days. Note that the projected Max-Low for the day is 1.0306. On the other hand a break and further move above 1.0400 might see 1.0430-50 on the upside.”
Tuesday, September 22, 2009
Forex: EUR/USD trades above 1.4600 after bouncing at 1.4560
FXstreet.com (Barcelona) – The Euro is trading back above 1.4600 level against the Greenback after falling 65 pips from 1.4626 to post intra-day low at 1.4560 in the minutes following the better than expected US retail sales report. During the American session, euro has recovered almost all of its previous losses and pair has risen to trade above 1.4600.
Currently the pair is trading around 1.4605/15, 0.10% below today's opening price action at 1.6578.
According to Mohammed Isah, technical analyst at FXTechtrade, current downtrend is a corrective one and the Euro will resume uptrend: "Its overall trend remains higher suggesting that the mentioned price action remains corrective of its MT uptrend. In such a case, its minor support printed Monday at 1.4514 will come in as initial support ahead of its stronger support residing at the 1.4446 level, its Aug 09 high where a reversal of roles is expected to turn EUR higher again."
Currently the pair is trading around 1.4605/15, 0.10% below today's opening price action at 1.6578.
According to Mohammed Isah, technical analyst at FXTechtrade, current downtrend is a corrective one and the Euro will resume uptrend: "Its overall trend remains higher suggesting that the mentioned price action remains corrective of its MT uptrend. In such a case, its minor support printed Monday at 1.4514 will come in as initial support ahead of its stronger support residing at the 1.4446 level, its Aug 09 high where a reversal of roles is expected to turn EUR higher again."
Forex: Euro rises to 1.4678, fresh 2009 high
FXstreet.com (Córdoba) – The rise in equities is sending Greenback down across the board. EUR/USD recently broke above 1.4652 to 1.4678, posting a fresh high for the year. The pair is now 0.25% above today’s opening price and is extending a seven day rally. On the upside the next resistance lies at 1.4700 and above at 1.4715 (Dec 18 high).
The FastBrokers Research Team affirms: “Technically speaking, the EUR/USD is still riding high off of last Tuesday’s breakout to the topside. The currency pair continues to set higher lows while trading above the psychological 1.45 level. We still place significance on Tuesday’s movement since the EUR/USD leapt to new 2009 highs. There aren’t any concrete, historical downtrend lines we can cross through present ranges. Hence, the medium-term uptrend is clearly intact. “
The FastBrokers Research Team affirms: “Technically speaking, the EUR/USD is still riding high off of last Tuesday’s breakout to the topside. The currency pair continues to set higher lows while trading above the psychological 1.45 level. We still place significance on Tuesday’s movement since the EUR/USD leapt to new 2009 highs. There aren’t any concrete, historical downtrend lines we can cross through present ranges. Hence, the medium-term uptrend is clearly intact. “
Forex: Greenback falls below 91.00 against the Yen
FXstreet.com (Córdoba) – The rise in U.S. markets boosted the Yen against the Dollar in the last hours. USD/JPY fell below 91.00 to 90.80, only two pips above intra-day low at 90.78. In case the pair breaks below the next support lies at 90.60. Current price at 90.92/94 is 0.05% above today’s opening price. On the upside resistance is located at 91.55 (intra-day high) and above at 91.90 and 92.10.
The FastBrokers Research Team afirms: “Despite the USD/JPY’s negative tendency, the currency pair seems to be running out of room to the downside since it has historical trading ranges nearby dating back to December 2008 and January 2009 lows. Meanwhile, investors continue to act off of the belief that the DPJ will enact economic policies supportive of a stronger Yen. However, it remains to be seen whether the BoJ will alter its monetary policy approach in any dramatic way.”
The FastBrokers Research Team afirms: “Despite the USD/JPY’s negative tendency, the currency pair seems to be running out of room to the downside since it has historical trading ranges nearby dating back to December 2008 and January 2009 lows. Meanwhile, investors continue to act off of the belief that the DPJ will enact economic policies supportive of a stronger Yen. However, it remains to be seen whether the BoJ will alter its monetary policy approach in any dramatic way.”
Forex: GBP/USD rebounds at 1.6400 and tests levels above 1.6500
FXstreet.com (Córdoba) – Cable found support at 1.6400 and from there started to rise. GBP/USD topped at 1.6510 posting the highest price for the American session. The rally in U.S. equities boosted Cable. Currently the pair is back below 1.6500 and is still down for the day, 0.50% below today’s opening price. The next resistance lies at 1.6520 (Sep 14 low) and above at 1.6590.
Against the Euro, the Pound plunged today falling to a fresh 4-month low. EUR/GBP rose to 0.8895 posting the highest price since May 15th.
Against the Euro, the Pound plunged today falling to a fresh 4-month low. EUR/GBP rose to 0.8895 posting the highest price since May 15th.
FX Drifts, Focus on Central Banks
With little economic data released at the start of the week, the focus in the currency market has shifted to Central Bank rhetoric, with the key highlights attributed to commentary from Fed Chairman Ben Bernanke and ECB President Jean-Claude Trichet. Speaking from the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke offered an optimistic assessment over the economic outlook saying, “economic activity appears to be leveling out, both in the US and abroad, and the prospects for a return to growth in the near-term appear good”. His upbeat outlook spurred on gains in the equity and commodities markets, while pushing the dollar slightly lower against the majors.
Meanwhile, ECB President Trichet sounded a cautious tone over the economic outlook for the Eurozone, suggesting that interest rates will likely remain low for a protracted length of time. He said, “We see signs confirming that the real economy is starting to get out of the period of freefall”, yet it “does not mean at all that we do not have a very bump road ahead of us”.
Nonetheless, the major currency pairs continue to drift in a lackluster manner as the summer doldrums have confined foreign exchange to rangebound trading. We remain biased for further dollar weakness in the coming weeks as economic data from the US continue to gradually improve and support the equity markets.
Meanwhile, ECB President Trichet sounded a cautious tone over the economic outlook for the Eurozone, suggesting that interest rates will likely remain low for a protracted length of time. He said, “We see signs confirming that the real economy is starting to get out of the period of freefall”, yet it “does not mean at all that we do not have a very bump road ahead of us”.
Nonetheless, the major currency pairs continue to drift in a lackluster manner as the summer doldrums have confined foreign exchange to rangebound trading. We remain biased for further dollar weakness in the coming weeks as economic data from the US continue to gradually improve and support the equity markets.
Forex: EUR/GBP holds near 0.8900
FXstreet.com (Córdoba) – The Euro finished with strong gains against the Swiss Franc and the Pound on Tuesday. EUR/GBP broke during the European session a key resistance at 0.8840 and rose to 0.8895, posting the highest price since May 15. At 0.8900 the pair has an important psychological level to break and above the next resistance lies at 0.8935 and above at 0.9000. The par has risen two hundred pips in the last two days and broke an important downtrend line.
Against the Swiss Franc the Euro also rose but at a slower face. EUR/CHF broke above 1.5150 and rose to 1.5170, which now holds as a strong resistance zone. The pair rose for the first time after five days. The Euro is still facing a downside momentum but is getting away from the 1.5100 zone.
Against the Swiss Franc the Euro also rose but at a slower face. EUR/CHF broke above 1.5150 and rose to 1.5170, which now holds as a strong resistance zone. The pair rose for the first time after five days. The Euro is still facing a downside momentum but is getting away from the 1.5100 zone.
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