|
|
|
Click to Help Us" " Site
With Your Friends
|
980
Traders Connected
|
|
|
|
|
|
|
The Forex market Goes Nuts, Pairs Present Phenomenal Rallies
|
|
|
 Print
|
Next Article
|
|
|
|
The Forex market Goes Nuts, Pairs Present Phenomenal RalliesThis time it started on the Forex market, as Dollar counterparts climbed higher throughout the session. Already during Asian hours investors were showing their confidence in the current recovery driving the indices and currency pairs higher. Throughout the session the Dollar index dropped dramatically from its recent support level, coming down to 77.1 points.
On individual pairs, the AUD/USD led the rally higher, breaking major resistance already during Friday’s session. The EUR/USD presented a massive turnaround and closee the day above its high of $1.4445. Even though this pair is now presenting an intraday technical continuation pattern, one must note that economic data could linger on this pair causing it to retrace and test its break out. When taking a glance at the chart below one can see the intra trend line resistance that must be broken to follow through.
EUR/USD - 1 hour chart
The Dollar/Yen also presented a phenomenal drop during yesterday’s session, backed by a weak Dollar. One must note that even though Japan’s economic data is still showing that the economy is deteriorating, price movement on this pair was caused yesterday due to a weak Dollar. Lending grew at the slowest pace in eight months in August as companies continued to cut spending. While the move might have been profitable for certain traders, the current price of the Yen is yet again causing problems for Japanese exporters. Yesterday’s price movement sent the USD/JPY down to critical support of ¥92. One must note that even though this pair is showing signs of a possible bounce, further overall Dollar weakness could have a further impact on this pair, sending it to lower levels. Key levels to watch out for are a break of either ¥93.31 or ¥92.
Stock Bounce Higher but Loose Their SteamStocks continued higher yesterday backed by Gold’s rally and overall momentum. Gold climbed throughout the session, breaching the $1000 mark, but failed to hold on to its gains. In addition, the G20 meeting added some spark to the session, as the leaders agreed that stimulus would continue to remain, helping the global economy, until countries are showing more signs of recovery. G20 leaders agreed that in due time they will engage in monetary tightening, using various exit strategies to rid the markets from excess cash.
From a technical point of view, the indices gapped up at the start of the session and climbed throughout the first few minutes. Even though they lost their steam during the day, the indices managed to find support as investors pushed them up to close around their highs of the day. Looking forward, even though the strong close gave investors confidence that the rally could continue, one must note that the major indices are now trading around critical resistance levels, ones that could prevent an immediate break.
Market Data to Watch Out For
The U.S will be the first to take the stage today, followed by New-Zealand and Australia. The U.S is scheduled to release its closely watched Beige Book and housing starts. One must note that housing start results have gained extreme interest among investors over the past year, due to the economic recession. In addition, New-Zealand will release its rate decisions, currently expected to hold at 2.5%. Even the decision could cause intraday volatility; many will be looking towards the statement that follows. Australia will finish off the session by releasing its employment data, something that could give a clue as to whether the RBA will consider increasing its central rate at its next meeting.
To view the full economic calendar click here.
New Features: Please note that our education center has been updated with new courses and tutorials on the Forex and Stock Market. Feel free to view our School and increase your trading knowledge
Our Sponsored Links
|
|
|
|
|
|
For active traders and investors trading the
Forex and Stock markets.
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please login to post comment
or sign up for a dodjit FREE
account
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copyright © 2008 dodjit.com All rights reserved.
|
|
|
