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Dollar slips due to failed liquidity plan by Federal Reserve
Tue, Sep 23 2008, 12:07 GMT
by Benny Menashe
| Long signal | Short signal | |
| Buy a break of resistance level at 1.8480 | Sell a break of support level at 1.7540 | |
| GBP/USD | Buy a break of resistance level at 1.8590 | Sell a break of support level at 1.7450 |
| Buy a bounce at 1.7540 | Sell a failure of breaking the resistance 1.8480 |
Fundamental
Treasury Secretary Henry Paulson's plan to end the rout in U.S. financial markets may derail the dollar's three-month rally as investors weigh the costs of the rescue.
The combination of spending $700 billion on soured mortgage-related assets and providing $400 billion to guarantee money-market mutual funds will boost U.S. borrowing as much as $1 trillion, according to Barclays Capital interest-rate strategist Michael Pond in New York. While the rescue may restore investor confidence to battered financial markets, traders will again focus on the twin budget and current-account deficits and negative real U.S. interest rates.
Technical
Sterling started an uptrend for a short period of time, as we can see strong demand in the market, based on technical indicators like RSI, which breaks 30% line and is pointing upwards, MACD crosses the signal line and is pointing upwards, and Bollinger gives us a bullish signal by closing the candle above the lower band.
GBP/USD (Daily Chart)
The primary tendency breaks the trend line.
GBP/USD (4 Hour Chart)
The pair breaks the channel middle line.
GBP/USD (Hourly Chart)
The Minor trend shows us a clear uptrend.
Resistance
1.8480
1.8590
Support
1.7540
1.7450
Published on Tue, Sep 23 2008, 12:17 GMT
Archive
- Down trend on long term looks certain for Euro
Published On Mon, Dec 1 2008, 11:02 GMT - Euro long term objectives could see it go further down
Published On Tue, Nov 25 2008, 05:35 GMT - Sterling hits 13-years low on UK rate cut view
Published On Mon, Nov 17 2008, 11:09 GMT - Euro looking to bounce against sluggish Dollar
Published On Mon, Nov 10 2008, 09:59 GMT - The pound climbed against the dollar and euro on speculation rising stocks
Published On Mon, Nov 3 2008, 09:12 GMT
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