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Dollar See-Saws before Closing Lower

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 7, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar see-sawed most of the day, before closing lower. The lack of economic reports caused a choppy two-sided trade. In addition, many traders stayed on the sidelines or evened up position ahead of this week’s many central bank reports. In most cases the Dollar continued its strength in a follow-through rally from Friday, but failed to hold on to its gains by the close. Technically, the Dollar Futures Index took out Friday’s high but failed to attract the buying strength it needed to drive it higher. The chart pattern suggests a break to 75.26 to 75.03 may be needed to relieve the overbought condition.

    The USD JPY traded inside of the 92.32 to 84.83 range. Technically overbought conditions pressured the market all day. The chart pattern and trading action suggests a pull-back to 87.80 to 87.10 is likely over the near-term.

    The main trend is down on the daily chart for the EUR USD. The lack of follow-through to the downside after the main bottom at 1.4801 was broken suggests that this currency pair may be oversold and ripe for a retracement. The first upside target is 1.4950.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
  2. Rider

    Rider New Member

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    U.S. crude for January delivery was down $1.30 to $72.63 a barrel, after settling $1.54 lower on Monday.

    Oil touched $72.54, its lowest since Nov. 27, earlier in the session. Until Monday, the market had traded in a range of about $75-$80 a barrel since mid-October.

    Investors in oil have looked to economic indicators and to other financial markets, such as equities, this year for signs of a recovery that would support oil demand.

    "The economy is still mixed," said David Moore, Commonwealth Bank's commodities strategist.
     
  3. Rider

    Rider New Member

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    The dollar gained against a basket of currencies on Tuesday, making dollar-denominated commodities more expensive for holders of other units.

    A downward revision to the U.S. government's forecast for 2010 global demand growth also pressured crude.

    The U.S. Energy Information Administration's monthly short-term outlook lowered its forecast for increased demand in 2010, and its forecast for OPEC and non-OPEC production was higher.

    "People were looking for U.S. oil demand to be higher and so, with the cut in the EIA forecast and a smaller increase overall, that's a little disappointing," Mark Waggoner, president of Excel Futures in Huntington Beach, Calif.
     
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