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

Dollar Set Up for Short-Term Rally Following Reversal Bottom

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 6, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
    Likes Received:
    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar was able to mount a comeback after early session weakness. A lower than expected U.S. pending home sales report helped raise fears the Fed would once again leave interest rates at historically low levels and fueled increased demand for the Dollar as a safe-haven investment. Oversold conditions also contributed to today’s rally. Today’s closing price reversal bottom indicates the start of a 2 - 3 day rally to 77.77 - 77.93.

    The USD JPY fell sharply this morning following the release of the weaker housing report which showed the number of contracts to buy previously owned U.S. homes fell in November more than analysts had estimated. Today’s close has this market in a position breakout to the bearside of an uptrending Gann angle at .9103. This would signal the start of a possible retracement to .8902.

    The EUR USD weakened into the close as the Dollar picked up strength. The bigger picture suggests a move to 1.4680 is likely. Minor resistance at 1.4503 could slow down the current upside momentum. The weakening Euro is setting up for a pull-back to 1.4350 - 1.4319.

    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.

Share This Page