Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Holiday Nightmares - Your Caravan is Missing! - 20th Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

U.S. Dollar Short-term Strength Evaporates

Currencies / Forex Trading Mar 24, 2009 - 04:19 AM GMT

By: ForexPros

Currencies Best Financial Markets Analysis ArticleAfter a brief foray into positive territory the USD is back under threat heading toward the low end of the recent ranges in late New York. Traders note that today’s action has been mostly stop driven by small accounts attempting to run with momentum but getting caught both ways. Aggressive buyers of USD from the overnight session were rewarded by new lows in the majors into the London fix but large accounts were using the dip to add to working longs and the majors reversed back toward the mid-to-high end of their ranges today; USD/CAD making lows in the process.

Traders report some RHS interest into the fix for GBP and EURO helping to underpin across the board with only USD/JPY holding good gains but off the highs late. Traders also note that a US investment back a good seller of USD/JPY into the high prints around 97.36 and working the sell side through the close.

USD/JPY ends around the 96.80 area after a brief dip to 96.50 area in stop driven trade obviously from longs set ahead of the fix. Traders expect the rate to remain two-way but the failure to hold the 97.00 handle will likely work against the bulls through tomorrow.

GBP fell to tech support at 1.4449 low print only to recover quickly a full handle; the rate is firm into the 1.4550 area with the 100 day MA under threat on a closing basis near-term. Traders note that solid bids were seen on the break suggesting large names buying GBP.

EURO fell to a low print at 1.3484 but spent no time on the 1.3400 handle recovering back to the 1.3630 area in late trade. Stops were noted on the break of 1.3510/20 area but volumes were light into the lows; traders note large names seen on the bid under 1.3500 suggesting the rate is due for further upside. Several shops note that the rate “feels” like it wants to try for the 1.3800 handle and with a strong close back on the 1.3600 handle the door is open for further short-squeeze.

USD/CHF rallied along with USD strength elsewhere initially but failed at a high print of 1.1344 before dropping back a full handle; ending the day around 1.1240 area putting the 200 day MA back into focus. Traders warn a close below the 1.1195 area could put the recent rally on hold no matter what the SNB decides to do as a shift in sentiment is likely at that point and no central bank can fight sentiment.

USD/CAD is making lows at this writing at 1.2265 putting the real potential for a close under the 100 day MA in play; traders note that the rate “feels” heavy after the fix and with interest in the emerging market currencies today money might move out of USD/CAD and into Aussie, Kiwi and others to take advantage of further strength seen there. In my view, the USD’s failure to extend early strength shows that the underlying strength of the Greenback in recent weeks is failing; aggressive traders can add to open USD shorts within 24 hours in my view. Look for the Majors to remain two-way but mostly higher overnight.


Resistance 3: 1.4730, Resistance 2: 1.4700/10, Resistance 1: 1.4650

Latest New York: 1.4574, Support 1: 1.3860, Support 2: 1.3780, Support 3: 1.3720


Rate firms again overnight; upside extends to new weekly highs before correcting back to zone of bids under 1.4480 area. Overhead resistance now at 1.4650 with the 1.4700 handle likely to trade the next 24 hours. Traders report stops likely over the 1.4710/30 area. The door is open to a rally back to the 1.5000 area. Some in-range stops driving some trade into the 1.4500 area. Lows likely remain secure. The volume needs to come up and I think the shorts have yet to bail as a group; that may be starting in earnest now.

Traders report stops in-range adding for two-way action. Long-term tech resistance now at 1.5000 area likely to cap near term. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. Next upside target is 1.4800 area, downside is near support at 1.4250 area

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

5:30am GBP CPI y/y

5:30am GBP BBA Mortgage Approvals

5:30am GBP Core CPI y/y

5:30am GBP RPI y/y

5:45am GBP Inflation Report Hearings

11:30am GBP BOE Gov King Speaks

2:30pm GBP MPC Member Blanchflower Speaks


Resistance 3: 1.3980, Resistance 2: 1.3820, Resistance 1: 1.3740

Latest New York: 1.3645, Support 1: 1.3480, Support 2: 1.3350, Support 3: 1.3300


Rate follows GBP in two-way action and holds gains but is not advancing as aggressively yet. Stops likely building above the 1.3740 area. Upside stops likely cleared in size and if the rate can close above 1.3650 area more upside is likely. Overhead resistance above 1.3350 area negated so a pullback to there would also be a strong buy. Traders note big names on the buy side on dips overnight; semi-officials and model accounts buying above 1.3400 and likely there today on the dip under 1.3500. Russians seen on the offer overnight in Europe. Bulls are likely in control of the market and any significant pullback is a buying opportunity in my view. Expect two-way action.

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

4:30am EUR German Flash Manufacturing PMI

4:30am EUR German Flash Services PMI

5:00am EUR Current Account

5:00am EUR Flash Manufacturing PMI

5:00am EUR Flash Services PMI

10:00am EUR Belgium NBB Business Climate

Analysis by: - 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 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 - 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