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 More Downside Action Expected This Week

Currencies / Forex Trading Apr 06, 2009 - 08:29 AM GMT

By: ForexPros

Currencies Best Financial Markets Analysis ArticleThe USD is two-way to start New York after opening mixed in Asia overnight; follow-on selling of the Greenback pushed the majors to their best levels of the day in early Europe with the exception of the USD/JPY. USD/JPY continued to advance reaching a high print at 101.46, its best levels since October of last year. Traders note that the weekend launch of a ballistic missile by the North Koreans created light FTQ buying of the USD against some


Asian currencies and with the underlying strength recently in the USD/JPY traders saw reason to bid the rate over the 101.00 handle; offers were said to be thick from exporters above the 101.00 area and more layered every 50 points or so suggesting that offers will continue to show up on further strength making upside progress difficult. Option-related offers likely on the approach to 101.50 also noted and the rate is currently holding firm around the 101.20 area in two-way action.

Yen weakness helped the GBP and EURO as traders bought the Europeans for Yen lifting both pairs against the USD; GBP high prints at 1.4953 triggering stops over the 1.4920 area. Low prints at 1.4838 with traders noting that after the highs in Europe the rate has stops in range putting the potential for a reversal on the board. Upside resistance at 1.5000 now expected to cap near-term with offers said to be resting above the 1.4980 area.

EURO high prints at 1.3583 were under stops said to be around the 1.3600 area; low prints at 1.3498 area still above the tech support area of 1.3480 from last week suggesting that the EURO has more upside to go but traders need to be cautious as a drop in Cable may take EURO with it; two-way action in the Yen pairs may also pressure the rate. USD/CHF is holding the 200 day MA once again; low prints at 1.1240 missing stops under the market said to be around the 1.1240/50 area. High prints in the rate at 1.1316 making a weak start to the week for Swissy. A close below the 200 day MA will likely attract technical selling from shorts and more rhetoric from the SNB.

USD/CAD remains pressured as well, low prints at 1.2223 again missing stops said to be layered under the 1.2200 area. High prints at 1.2306 make for a narrow range in the rate and with USD weakness elsewhere the rate is expected to break lower during the day. With no economic news on the boards for the US today all the majors are expected to remain two-way and technical; stops are likely in range in all pairs and ranges likely will extend once New York gets underway in earnest. In my view, the USD will remain two-way for the next few days as traders continue to address how to price the cost of the financial crisis in light of potential new actions by the G-20; after the meeting last week traders are seeing a better coordinated effort coming from the governments involved. Look for the USD to get off to a slow start this week with more downside coming.

GBP/USD Daily

Resistance 3: 1.5040/50, Resistance 2: 1.5000, Resistance 1: 1.4950

Latest New York: 1.4942, Support 1: 1.4650, Support 2: 1.4580, Support 3: 1.4550

Comments

Rate pressures up to within striking distance of 1.5000 overnight; likely offers will be thick on any further advance. Aggressive traders can look to lighten up on longs above 1.4950 area. Stops noted above the 1.4880 area on the way up with traders noting stops under there on the way down. Traders note support is likely firm at the 1.4450 area as expected; offers ahead of 1.4700 easily absorbed keeping the bias to the upside. Close over 1.4900 argues for further gains but tech resistance is firm ahead of 1.5000. Overhead target of the 1.5000 area likely to trade but expect pressure. Traders feel the 23-year lows will likely remain secure. The shorts may have lost control of the market above the 1.4440 area now and if that is the case a test of the 1.5000 area is almost a done-deal. Traders report stops in-range adding for two-way action.

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

4:30am GBP Manufacturing Production m/m

4:30am GBP Industrial Production m/m

7:01pm GBP Nationwide Consumer Confidence

7:01pm GBP NIESR GDP Estimate

EURO/USD Daily

Resistance 3: 1.3620/30, Resistance 2: 1.3580, Resistance 1: 1.3520

Latest New York: 1.3516, Support 1: 1.3480, Support 2: 1.3420, Support 3: 1.3380

Comments

Rate consolidates and holds gains but is capped at 1.3580 with stops likely above 1.3600 now. Rate is solid above the 100 day MA. Traders note offers above the 1.3630 area but bids continue to support ahead of 1.3480; foothold over the 1.3500 handle likely to encourage a short-squeeze. Rate likely has stops building in both directions; shorts lose control of the market after rate clears stops above the 1.3430 area. Action remains two-way; any move lower is likely supported on dips. Overhead resistance at 1.3330/50 area now support on a pullback; aggressive traders can ADD on a dip. Possibly more official and semi-official bids overnight with traders noting Middle-eastern names on the bid. Long-term bulls are likely still in control of the market and this significant pullback is a buying opportunity in my view.

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

NONE

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 © 2009 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