Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Why Record-High Stock Prices Mean You Should Buy More - 20th Nov 19
This Invisible Company Powers Almost the Entire Finance Industry - 20th Nov 19
Zig-Zagging Gold Is Not Necessarily Bearish Gold - 20th Nov 19
Legal Status of Cannabis Seeds in the UK - 20th Nov 19
The Next Gold Rush Could Be About To Happen Here - 20th Nov 19
China's Grand Plan to Take Over the World - 19th Nov 19
Interest Rates Heading Zero or Negative to Prop Up Debt Bubble - 19th Nov 19
Plethora of Potential Financial Crisis Triggers - 19th Nov 19
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

U.S. Dollar Weakens as Flight to Safety Lightens

Currencies / Forex Trading Mar 16, 2009 - 08:22 AM GMT

By: ForexPros

Currencies Best Financial Markets Analysis ArticleThe USD is mixed to open New York today after starting mildly better in Asia overnight; traders note initial disappointment from the G-20 meeting which announced nothing new and appeared to be simply a re-hash of the current economic situation created a brief push higher for the Greenback. After testing previous resistance levels across the board the USD began a slide through European trade and is weak at the start of New York with the exception of USD/JPY. The rate is still holding the 98.00 handle after testing the 98.50 area of reported supply with stops noted above but offers continue to hold the rate back into an inside-range day so far.


Traders note firmer equities were adding a bit of lift to the pair but overall volumes are light. High prints at 98.51 with lows on support at 97.54; option expiries today may be helping to hold the rate around 98.00 area.

USD/CHF is lower with lows at 1.1809 and holding 1.1820 area in early New York; high prints at 1.1915 were offered by technical traders in light volume. Should the rate fail to hold the 1.1800 handle the next 24 hours I think a case can be made that the rally to 1.1970 was a false break-out as there has been no follow-through.

USD/CAD is weaker holding 1.2660 area after low prints at 1.2643; traders note stops under the market were around the 1.2650 area but bids supported suggesting buyers are still there on dips. High prints at 1.2797 were under the 1.2820 resistance area suggesting more technical trade in the pair.

EURO has rallied steadily overnight with high prints in early New York at 1.3047 triggering stops above the weekly high around 1.2960 area with aggressive buyers helping the rate firm above the 1.3000 area; traders note large names on the bid on the dips suggesting more accumulation. Aggressive traders can look to lighten up on open longs for a possible correction from the 1.3030 area.

GBP high prints at 1.4232 lifting to overhead resistance around 1.4250 before falling back a bit; traders note cross-spreaders for GBP crosses adding to the upside momentum. If the rate can hold above 1.4200 analysts suggest a test of the 1.4400 area is in view. In my view, the USD continues to work on a top but with the major pairs now trading at or through overhead initial resistance a correction would be reasonable to expect.

Aggressive traders can sell a rally in the USD this week if economic news is seen as USD-supportive; I don’t think the Greenback has enough bid interest to hold onto this 3-year high. Flight-to-quality buying is beginning to lighten up as progress is being made on the economic issues and sentiment is beginning to change. Although the economic solutions probably won’t make a real difference in the long run I think the perception that work is getting done is helping to alleviate fear and panic buying of USD. Look for the Majors to continue two-way but pullbacks should be brief and hold above support areas.

GBP/USD Daily

Resistance 3: 1.4350, Resistance 2: 1.4320, Resistance 1: 1.4250

Latest New York: 1.4170, Support 1: 1.3860, Support 2: 1.3780, Support 3: 1.3720

Comments

Rate holds gains and makes new high overnight; stops seen above weekly highs around the 1.4050 area. Tests support on the 1.3800 handle and attracts solid bids traders say. Lows likely remain secure. Reversal off weekly lows a positive technical but the volume needs to come up and I think the shorts have yet to bail as a group. Traders report stops in-range adding for two-way action. Long-term 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 with long-term support at 1.3500 area now in play. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Short squeeze back on the board I think.

Data due Tuesday: All times EASTERN (-4 GMT)

5:30am GBP DCLG HPI y/y

4:10pm GBP BOE Gov King Speaks

EUR/USD Daily

Resistance 3: 1.3100, Resistance 2: 1.3080, Resistance 1: 1.3050

Latest New York: 1.3035, Support 1: 1.2850, Support 2: 1.2720, Support 3: 1.2680

Comments

Rate follows GBP in two-way action, holding support now above the 1.2880 area. Upside stops triggered on the move over 1.2950/60 area with new buying coming in above 1.3000 area. Overhead resistance is thick up to 1.3100 area so a pullback might be in the works. Aggressive traders can liquidate some longs above 1.3000 area and hold base positions. Traders note big names on the buy side on dips overnight; semi-officials buying 1.2900 area. Close above key 1.3030 area needed for further upside until then rallies likely to be sold so expect more two-way action. Bulls are still attempting to find a bottom. Technical levels around the 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath.

Data due Tuesday: All times EASTERN (-4 GMT)

6:00am EUR German ZEW Economic Sentiment

6:00am EUR ZEW Economic Sentiment

3:15pm EUR ECB President Trichet Speaks

Join us for the Morning FOREX Briefing daily at 7:45 AM Central/Chicago time (GMT -6)

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

© 2005-2019 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

6 Critical Money Making Rules