On the Forex market the Dollar index managed to gain some strength during yesterday’s intraday session but failed to show any signs of a change in trend. One must note that despite a declining equity market, caused by increasing fear that the economic recession isn’t going to end in 2010, the Dollar safe haven is failing to show any major strength.
As one may recall, the Dollar has been classed as a safe haven over the last couple of months. Recent price action from equities hasn’t caused a major shift back into Dollar safe haven assets, which is so far signaling that the current declining pattern in equities could only be a mere correction.
Economic data and news event should be observed carefully, as current sentiment levels could easily be dragged down, considering data doesn’t show an improvement. This situation could weigh on the recent rally extending the current correction much further than what is normally classed a healthy one.
On individual pairs the EUR/USD managed to hold its ground during yesterday’s session, despite the selling pressure. This pair is now trading just below its prior high of 1.3735 after forming a bearish engulfing like candlestick. When observing the price pattern more carefully one can see that this pair is still trading within its secondary bullish trend.
The USD/CAD made an impressive turnaround yesterday, bouncing off recent support. From a low of 1.15, the Dollar/ Cad pair has now retraced back to the 1.1732 level. Even though this pair is showing mild strength, resistance of 1.1769 should be taken into consideration.
The USD/JPY is still trading above its neckline support, further information can be found on yesterday’s report.
The Pound lost its steam during yesterday’s trading day as Governor Mervyn King said that the economy will probably face a slow recovery. He also mentioned that the economic outlook still remains uncertain and GDP results will probably show depressing figures.
Read the full article at Dodjit.com
As one may recall, the Dollar has been classed as a safe haven over the last couple of months. Recent price action from equities hasn’t caused a major shift back into Dollar safe haven assets, which is so far signaling that the current declining pattern in equities could only be a mere correction.
Economic data and news event should be observed carefully, as current sentiment levels could easily be dragged down, considering data doesn’t show an improvement. This situation could weigh on the recent rally extending the current correction much further than what is normally classed a healthy one.
On individual pairs the EUR/USD managed to hold its ground during yesterday’s session, despite the selling pressure. This pair is now trading just below its prior high of 1.3735 after forming a bearish engulfing like candlestick. When observing the price pattern more carefully one can see that this pair is still trading within its secondary bullish trend.
The USD/CAD made an impressive turnaround yesterday, bouncing off recent support. From a low of 1.15, the Dollar/ Cad pair has now retraced back to the 1.1732 level. Even though this pair is showing mild strength, resistance of 1.1769 should be taken into consideration.
The USD/JPY is still trading above its neckline support, further information can be found on yesterday’s report.
The Pound lost its steam during yesterday’s trading day as Governor Mervyn King said that the economy will probably face a slow recovery. He also mentioned that the economic outlook still remains uncertain and GDP results will probably show depressing figures.
Read the full article at Dodjit.com
