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EUR USD has Free Ticket for Rally

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Nov 18, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The EUR USD posted a sizable gain. Tuesday's supportive comments from European Central Bank President Trichet were not enough to stop the Dollar’s slide today. Matters weren’t helped after Luxembourg premier Jean-Claude Juncker said that the Euro’s rally hasn’t hurt the Euro Zone recovery. This comment gave traders the green light to drive the currency higher. If upside momentum continues at the current pace, we could see a test of 1.5063 tomorrow.

    The GBP USD traded lower on Wednesday. This was triggered by a negative reaction to the Bank of England minutes and overbought technical conditions. Traders reacted to the news from the BoE minutes that the vote was split regarding the recent expansion of the central bank’s quantitative easing program. The initial reaction to the split vote was positive as it suggested the bank would not expand further. The market, however, broke after a follow-through rally failed. Traders looked for the safety throughout the New York session while they sorted out the data from the minutes report.

    The U.S. reported an unexpected drop in Housing Starts. This bad news kept downside pressure on the equity markets throughout the trading session. The choppy trade in the U.S. Equity markets created see-saw movement in the currencies throughout the day. Traders didn't know whether to buy the dips in the Dollar in anticipation of a drop in equity markets or to sell more Dollars.

    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.

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