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U.S. Dollar Finishes Higher in Choppy, Two-Side Trade

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

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com


    The U.S. Dollar managed to close higher today despite late session attempts in New York to erase earlier gains. This is strong evidence that most of today’s rally was due to short-covering rather than fresh buying. Comments from ECB President Trichet were supposed to show support for Bernanke’s comments from yesterday, but actually helped ignite the rally in the Dollar. Technically, the Dollar is oversold on the daily chart. This is another reason for today’s up move.

    The EUR USD closed lower after European Central Bank President Trichet talked up the Dollar during the overnight session. Once again it looks like the Euro having trouble with the $1.5000 area. The high for the year at 1.5063 in October has stopped all recent attempts to break this level. Traders seem fearful that the ECB may take stronger action other than verbal intervention to force the Euro lower.

    The GBP USD closed lower after making a valid attempt to turn higher for the day. The uptrend has been strong in this currency lately as the bulls seem to have control over the market despite attempts by Bank of England Governor King recently to talk this currency lower. It looks as if traders are beginning to believe that the economy has bottomed and that the BoE is getting ready to reduce quantitative easing.

    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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