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Forex Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jun 19, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today's Forex Analysis summary

    The U.S. Dollar strengthened late Thursday follows better than expected U.S. economic reports which showed the economy was stabilizing and beginning to show signs of bottoming.

    The lackluster trade in the Forex markets continued throughout the day with no real movement in either direction. Today’s action is best described as two-sided. This is most likely because of the mix of the news recently. Most major Forex pairs for the most part have reached short-term retracement areas which have more or less neutralized them.

    The EUR USD could not hold on to gains and closed lower. The lower-top, lower- bottom formation is indicating that the market is still in a downtrend on the daily chart. Investors feel the Euro is too high and may curtail demand for Euro Zone exports.

    The GBP USD finished down on Thursday. The chart formation still suggests this market is in an uptrend, however, a Bank of England comment that a U.K. economic recovery may be “sluggish” held to downside pressure.

    A stronger stock market led to bullishness in the USD JPY. Traders are also beginning to feel that an economic recovery in the U.S. will put downside pressure on the Yen.

    The Swiss National Bank left interest rates unchanged while hinting that action may have to be taken if the Swiss Franc continues to appreciate too rapidly. The SNB is using verbal intervention to weaken the Swiss Franc. Its biggest fear is deflation.

    Trader demand for greater risk and higher yielding assets helped to support the AUD USD. Technically, this pair remains in an uptrend and will not turn the trend down unless .7828 is violated.

    An improving economy and a greater appetite for higher yielding assets is boosting demand for the NZD USD. Crossing .6467 will reaffirm the uptrend and set up a test of the recent top at .6590. Minor support is being found in a retracement zone at .6211 to .6126. If the bottom inside this zone fails at .6151 then the trend turns lower and this market will accelerate to the downside.

    By ForexHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis

    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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