Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. Dollar Continues to Consolidate Ahead of Non Farm Payrolls

Currencies / Forex Trading Dec 03, 2008 - 07:26 AM GMT

By: ForexPros

Currencies Best Financial Markets Analysis ArticleDespite a weaker open and a test of near-term S/R the USD has recovered to post highs against some pairs as intraday volatility continues. Equities faded into the middle of the day unable to hold early gains helping to push the majors to lower prices in two-way volatility. Crude giving up gains also was a factor for lower EURO pricing traders say but for the most part the majors are struggling to hold support against negative sentiment as traders continue to wait for signs that the financial crisis is mitigating.


GBP had early highs at 1.5072 before dropping two full handles in late trade; traders note selling sympathy with EURO and cross-spreaders adding to the volatility.

EURO high prints looking for stops at 1.2767 but traders note they were not in size over the 1.2750 area suggesting that stops are higher up or that they were cleared last week making for a potential rotation lower in the works as the rate failed to advance past the weekly opening range.

USD/CHF continued to sketch out a tight range failing to extend in either direction as early highs and lows held all day. Traders note that stops are likely building in size on both sides of the rate as other pairs extend ranges suggesting more volatility may be due soon.

USD/CAD rallied through upside resistance for a high print at 1.2585 clearing stops above the 1.2540/50 area; traders note that uncertainty in the new Canadian government likely has pressured Loonie lower against the USD. Traders note that the rate has had really thin volume and today’s moves may have been exaggerated but the fact is the rate has extended above near-term resistance suggesting that the rate may try for the next resistance level above the 1.2700 area. In my view, today’s action is two-way within existing ranges with a few exceptions but volumes haven’t been that impressive.

Most likely the USD is continuing to trade in a consolidation bias until Friday’s NFP report. Tomorrow’s data will likely provide a bit of volatility but I think the market is waiting to see the extent of the employment data this week. Look for the USD to quiet down overnight as the market prepares for US data in the morning.

GBP/USD Daily

Resistance 3: 1.5680, Resistance 2: 1.5620 , Resistance 1: 1.5550 , Latest New York: 1.4898

Support 1: 1.4770 , Support 2: 1.4700/10, Support 3: 1.4650

Comments

Rate forced lower into early Asia overnight but reverses into Europe. Analysts suggest 100 BP rate cut coming on Thursday; probably already fully factored in. Good bids reported but supply seen from semi-official names. Stops in range helps to pressure but support has failed at 1.5050 area. Traders note solid two-way action with stops cleared across several levels. Sellers hold control above 1.5100 area so far; OK to buy if flat on a dip. Profit-taking likely to result in a squeeze on the further strength. Technical trade overnight again. BOE rate cut increasingly likely but that is likely completely factored in at this point. Traders note liquidity is only moderate and still on the lower side. Aggressive traders can look to buy the next dip.

Data due Wednesday: All times EASTERN (-5 GMT)

4:30am GBP Services PMI

5:30am GBP BRC Shop Price Index y/y

EURO/USD Daily

Resistance 3: 1.2950 , Resistance 2: 1.2880 , Resistance 1: 1.2750/60 , Latest New York: 1.2709

Support 1: 1.2580 , Support 2: 1.2550 , Support 3: 1.2480

Comments

Late break with spillover from GBP clears stops under the 1.2700 area and 1.2620/30 area. Possible reversal now in play but the rate needs to firm above the 1.2850 area in my view. Bids are building under the 1.2600 area as expected; sell-off likely to be bought hard now. OK to try the long side again on a dip. Traders note stops building above the market around the 1.2750 area in size likely to help create some two-way action but initial try for stops misses with a high print at 1.2767. Support also from cross-spreaders as they unwind Yen. Rate is an absolute screaming buy in my view—I can’t see further weakness being ignored by the buyers.

Traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.

Data due Wednesday: All times EASTERN (-5 GMT)

4:00am EUR Final Services PMI

5:00am EUR Retail Sales m/m

Analysis by: http://www.Forexpros.com - Written by Jason Alan Jankovsky

Forexpros offers the most definitive Forex portal on the web. It contains industry leading market analysis, up-to-the minute news and advanced trading
tools which provides brokers, traders and everyone involved in the financial market with an all-round guide to Forex.

Copyright © 2008 by ForexPros.com All rights reserved.

Disclaimer: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

ForexPros Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in