The Pound is clinging on to $1.6
Even
though the economic calendar was relatively light on data yesterday the
various Forex pairs still presented a volatile session. The Dollar Index
jumped higher after three days of treading water, climbing to 81
points. One must note that the 80 point level will act as a
psychological support level, especially as the 80 points acted as a
critical pivot point in the past.
The Pound/ USD
continued higher though early morning hours but retraced after finding
resistance around $1.6. Today session started in a bearish mood as
sellers came back into the market. Even though indicators are showing
dramatic signs of overbought levels, current market conditions could
send this pair higher in the long term, especially as certain analysts
are still classing the pound as undervalued. Recent trend line
resistance could act as support on the way down, allowing bullish
traders more comfortable entry points.
The USD/JPY presented a massive turnaround during early morning hours
climbing by over 100 pips. The main reason for the climb was risk
appetite as investors from across the globe, sold the low yielding
currency to buy the USD Dollar. According to recent comments from
Treasury Secretary Timothy Geithner, the economy is
making progress and “credit is starting to ease a bit”. According to
Bloomberg news; the U.S government’s current rating is still stable
despite recent problems in the economy.
Read the full article at dodjit.com
though the economic calendar was relatively light on data yesterday the
various Forex pairs still presented a volatile session. The Dollar Index
jumped higher after three days of treading water, climbing to 81
points. One must note that the 80 point level will act as a
psychological support level, especially as the 80 points acted as a
critical pivot point in the past.
The Pound/ USD
continued higher though early morning hours but retraced after finding
resistance around $1.6. Today session started in a bearish mood as
sellers came back into the market. Even though indicators are showing
dramatic signs of overbought levels, current market conditions could
send this pair higher in the long term, especially as certain analysts
are still classing the pound as undervalued. Recent trend line
resistance could act as support on the way down, allowing bullish
traders more comfortable entry points.
The USD/JPY presented a massive turnaround during early morning hours
climbing by over 100 pips. The main reason for the climb was risk
appetite as investors from across the globe, sold the low yielding
currency to buy the USD Dollar. According to recent comments from
Treasury Secretary Timothy Geithner, the economy is
making progress and “credit is starting to ease a bit”. According to
Bloomberg news; the U.S government’s current rating is still stable
despite recent problems in the economy.
Read the full article at dodjit.com
