On the Forex market the Dollar
index dropped after forming a doji like candlestick on Monday. The
index dropped below 80 points, climbing back into its recent trend. The
move was widely expected; especially as the risk for appetite has flip
sided over the last couple of months, sending carry trades and other
high yielders flying.
On individual pairs, the Euro/Dollar and the Pound/Dollar
both presented a reversal, climbing higher, while the AUD/USD climbed
higher after forming support on Fibonacci level 38.2%. Over in England,
political news was quickly brushed aside Wednesday morning as further
financial problems surfaced. According to Sky news, Lloyds banking
group will lay-off an additional 1500 employees that are located in
approximately 160 branches across England. Despite negative headline,
the GBP/USD continued to gain strength early morning backed by fading
political problems and improving housing data. As we recall Gordon
Brown managed to survive the labor party meeting the other day and
maintain his status. Even though the political saga is far from over,
investors are now looking past the problems, taking advantage of the
undervalued pound.
index dropped after forming a doji like candlestick on Monday. The
index dropped below 80 points, climbing back into its recent trend. The
move was widely expected; especially as the risk for appetite has flip
sided over the last couple of months, sending carry trades and other
high yielders flying.
On individual pairs, the Euro/Dollar and the Pound/Dollar
both presented a reversal, climbing higher, while the AUD/USD climbed
higher after forming support on Fibonacci level 38.2%. Over in England,
political news was quickly brushed aside Wednesday morning as further
financial problems surfaced. According to Sky news, Lloyds banking
group will lay-off an additional 1500 employees that are located in
approximately 160 branches across England. Despite negative headline,
the GBP/USD continued to gain strength early morning backed by fading
political problems and improving housing data. As we recall Gordon
Brown managed to survive the labor party meeting the other day and
maintain his status. Even though the political saga is far from over,
investors are now looking past the problems, taking advantage of the
undervalued pound.
GBP/JPY possible setup
Even
though indicators are pointing to overbought conditions the price
pattern is now trading around resistance. Should the Pound receive
further strength and break the $160.80 level, bullish positions could
be an option. One must note that a break will depend on the Pound’s
overall momentum.
Read the full article at dodjit.com
though indicators are pointing to overbought conditions the price
pattern is now trading around resistance. Should the Pound receive
further strength and break the $160.80 level, bullish positions could
be an option. One must note that a break will depend on the Pound’s
overall momentum.
Read the full article at dodjit.com
