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Pre-Holiday Profit-Taking Pressures Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 25, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar finished lower against a basket of currencies under thin, pre-holiday trading conditions. Today’s weakness could have been worse had it not been for better than expected initial claims and durable goods. Both reports signaled an improving economy.

    Although it is difficult to gauge the actual reasons behind the weakness, it’s easy to speculate that the huge run-up in the Dollar the past few weeks is making it ripe for profit-taking.

    The most important thing that traders should take away from these markets this week is that sentiment is shifting away from risk-based decision making to more fundamentally driven decision making. The rally on Tuesday, Wednesday’s weakness and today’s action are prime examples. For example, traders drove up the Dollar on good existing home sales news on Tuesday while driving it lower on poor new home sales on Wednesday. Thursday’s reports helped stop a possible sharp decline.

    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.
    #1 forextrends24, Dec 25, 2009
    Last edited: Dec 25, 2009

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