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Euro Closes Higher; Poised to Continue Up Move

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Mar 13, 2010.

  1. forextrends24

    forextrends24 New Member

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

    The Euro closed the week higher and in a position to continue the rally as financial tensions have eased enough in Greece to warrant the beginning of a short-covering rally. Technically, the main trend is up on the daily chart with 1.4009 a possible near-term target. Although most of the strength in the Euro this week was attributed to the easing of the financial crisis in Greece, there are rumors out there of a possible $50 billion bailout by France and Germany. If this bodes to be true, then look for another spike to the upside next week.

    The GBP USD finished the week strong. Oversold conditions and renewed optimism about the economy helped to boost prices. The current move is not likely to change the trend to up on the daily chart, however. The fundamentals still suggest lower prices are likely. Concerns over the economic recovery, political uncertainty and the lack of confidence in the Bank of England should limit gains or trigger fresh selling after a retracement.

    The USD JPY closed the week higher, driven mostly by the strong U.S. equity markets and demand for higher risk assets. Technically, this pair reached a major 50% price at 90.95. A breakout above this level should send the market to 91.62. The direction of the stock market will dictate the moves in the Japanese Yen. A weaker stock market should drive the Yen higher. A stronger stock market will renew interest in the carry trade and pressure the Yen. Early Friday, the Japanese government expressed concern about the strength in the Yen. The “verbal intervention” helped to weaken the Yen.

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