Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. Dollar Stalls at Resistance

Currencies / Forex Trading Feb 18, 2009 - 08:34 AM GMT

By: ForexPros

Currencies Best Financial Markets Analysis ArticleThe USD continued to climb overnight but stalled off the highs in New York showing some signs of topping again as the long-awaited government “stimulus” bill failed to encourage investors today. At this writing President Obama is signing into law a record spending bill that has serious flaws and serious short-sighted programs in my view which will lead to a breakdown in economic recovery and a protracted recession/depression.


Proponents of the bill suggest that spending will help the economy recover faster but many analysts and traders doubt that the method of investment will have little lasting effect. Only history will tell if today was the beginning of a faster economic recovery for the US. Despite weaker equities and better-than-expected overseas data the majors retreated to their worst levels of the day in early New York trade before cutting losses to finish above what many consider to be key support.

Cable fell to a low print at 1.4122 overnight and those lows went unchallenged in New York despite a brief show under the 1.4200 handle; the rate began a steady recovery to hold back above the previous 1.4250 support level and is in the top 50% of the day’s range.

EURO dropped into stops said to be resting at the 1.2650 area and below for a low print at 1.2561 in thin conditions; traders note that during the break semi-official and some possible sovereign bids were seen into the 1.2590 area absorbing offers to close back above the 1.2600 handle.

USD/JPY held gains above the 92.00 handle after overnight highs at 92.77 went unchallenged in New York ending around the 92.40 area; traders note that political influence from Secretary of State Clinton’s visit to Asia may help lift the USD a bit but expect heavy sell interest ahead of 93.00 area suggesting the rate may have a hard time joining the lift seen elsewhere.

USD/CHF stalled at the monthly double-top at the 1.1780 area for a high print at 1.1781 before retreating a full handle back to the 1.1680 area late in the day; traders note that higher gold prices may be underpinning CHF putting the USD on the defense into the end of the week. Analysts note that today’s close is below yesterday’s highs suggesting that the USD may have put in highs for the week despite the strong showing early.

USD/CAD held above the 1.2600 handle after a high print at 1.2676 and looks set to challenge the 1.2700 handle overnight but if the Greenback fails to rally overnight traders expect heavy stops in the 1.2580 area from longs set this week. In my view, the USD is stalling again at resistance and without better news from the US this week it is likely the majors will recover into New York tomorrow. Look for more two-way action overnight ahead of US housing data tomorrow.

GBP/USD Daily

Resistance 3: 1.4700/10, Resistance 2: 1.4650, Resistance 1: 1.4600/10, Latest New York: 1.4259

Support 1: 1.4250/60, Support 2: 1.412030, Support 3: 1.4000

Comments

Rate falls back to next support level at 1.4130 area but bounces on large names on the bid. Traders note technical action continues. Rate needs to return to the 1.4500 area fairly fast and a close above 1.4700 area to keep bulls happy near term. Traders note stops and active selling as the rate drops back under 1.4320 area Monday again; tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number. 23 year lows are very likely to hold on any break. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Rate trading on technical’s now. Spillover from EURO likely but modest.

Data due Wednesday: All times EASTERN (-5 GMT)

4:30am GBP MPC Meeting Minutes

6:00am GBP CBI Industrial Order Expectations

EUR/USD Daily

Resistance 3: 1.3080 ,Resistance 2: 1.3020/30, Resistance 1: 1.2990/1.3000

Latest New York: 1.2604, Support 1: 1.2790/1.2600, Support 2: 1.2550/60, Support 3: 1.2500

Comments

Rate drops through support Monday and Tuesday to a multi-week low; traders report large names absorbing offers ahead of 1.2600 and slightly below suggesting a potential buy point. Rate fails to hold firm on the 1.2900 handle but dips appear to be a test of support rather than a move lower so far. Aggressive sellers likely to try and cap above key 1.3030 area; failure to hold 1.2900 likely to signal a further test of the lows but be patient. The dip is a buy opp but be nimble. Cross-spreaders likely pressure as crosses are unwound. Close above 1.3030 needed for further upside until then rallies likely to be sold into support around 1.2620/30 (?).Bulls are still attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Technical levels around the 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath.

Data due Wednesday: All times EASTERN (-5 GMT)

NONE

Analysis by: http://www.Forexpros.com - Written by Jason Alan Jankovsky

Forexpros offers the most definitive Forex portal on the web. It contains industry leading market analysis, up-to-the minute news and advanced trading
tools which provides brokers, traders and everyone involved in the financial market with an all-round guide to Forex.

Copyright © 2009 by ForexPros.com All rights reserved.

Disclaimer: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

ForexPros Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in