1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Dollar Rally Continue?

Discussion in 'Forex Daily News & Outlook' started by forexpros2, Dec 10, 2009.

  1. forexpros2

    forexpros2 Member

    Joined:
    Oct 20, 2009
    Messages:
    334
    Likes Received:
    0
    Dollar Rally Continue?

    We went right to the point on Tuesday where resistance would kick in, 1.4770-1.4780, and it went right to 1.4780 but could not get above. This has set up a bearish formation on the short term charts. Unless that resistance area is taken out, and ultimately 1.4900, the eur/usd is in correction.

    That of course does not mean there can't be a move higher...there can, and it may still fall short of 1.4900. Movement above 1.4780 is likely to target 1.4820, 1.4840 (both of these are minor resistance points) and if it continues then 1.4860. Movement above this point will run at the former swing highs at 1.4890-1.4900.

    Short-term trend is down and first minor support comes in at 1.4720 with a drop below targeting 1.4700. No real confirmation of a further decline comes until the rate moves below 1.4660. This would target 1.4625 followed by 1.4600-1.4580. 1.4560 and 1.4530 provide support beyond if the pair continues to fall.

    Trade Balance and Unemployment Claims due of the US at 13:30 GMT.


    Forex trading analysis written by Cory Mitchell, CMT for Forexpros.
     
  2. Rider

    Rider New Member

    Joined:
    Nov 24, 2009
    Messages:
    60
    Likes Received:
    0
    Sterling rose 0.3% against the dollar to $1.6316 while the euro fell 0.3% to 90.26 pence, with some traders citing UK corporate buying of sterling.

    Investors awaited a Bank of England interest rate decision. It is expected to hold rates at 0.5% and leave its quantitative easing target unchanged. Any impact on sterling is expected to be minimal.

    The Swiss franc dipped briefly after the Swiss National Bank held interest rates steady and stuck to its pledge to fight an appreciation of the franc decisively.

    This was tempered, however, as the bank dropped its offer to buy corporate bonds, the first signs it was easing drastic stimulus measures, and as SNB chairman Jean-Pierre Roth said the franc had stayed stable versus the euro.

    The euro briefly rose to a session high around 1.5131 francs before dipping back down to around 1.5106, little changed on the day.

    The dollar index, which tracks the greenback against a currency basket, was steady at 76.007 while the dollar gained 0.6% against the yen to ¥88.41.
     
Loading...

Share This Page