Currencies: Technical Strategies
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Dollar Rally Ends − Right on Target
Wed, Mar 26 2008, 21:59 GMT
by Andrei Pehar
The US Dollar experienced a short rally last week, which came to an abrupt ending after the Easter holidays. However the reversal came as no surprise for technicians, as it occurred at precisely at the same key Fibonacci level on just about every major Dollar-cross pair.
USD/JPY
Against the Japanese Yen, we saw the Dollar rally to 101.02 (38.2% Fib) after previously dropping a low as 95.74 We now expect to see the next support at 98.64 and 95.74, and if price can break below that then 93.53, 92.42, and eventually 91.04 are the next targets. However there are also rumors on the market that the Bank of Japan will intervene to "protect" any prices below 95.00, so this level needs to be watched especially closely.
EUR/USD
Looking at the Euro against the Dollar, we see a very similar situation. Here, the US Dollar managed a brief recovery from 1.5902 to 1.5344 (also the 38.2% Fib). If price can break above the prior high of 1.5902, then we can expect to see the next resistance at 1.6165, 1.6297, and eventually 1.6460 Caution is needed here as well, as the European Central Bank has also pledged to intervene, should prices rise above 1.60
USD/CHF
Against the Swiss Franc, the US Dollar managed a recovery from 0.9643 up to 1.0202 (you guessed it, 38.2% Fib). If the current drop takes us below the prior low if 0.9643, then support is expected at 0.9380, 0.9248, and eventually 0.9084
Published on Wed, Mar 26 2008, 22:53 GMT
Archive
- Has the Aussie Found Bottom?
Published On Wed, Oct 22 2008, 20:29 GMT - Next Levels to Watch for the EUR/USD
Published On Wed, Oct 8 2008, 21:08 GMT - How to Catch the Next EUR/USD Move
Published On Thu, Sep 25 2008, 12:16 GMT - Yen Ranges Against US Dollar
Published On Fri, Sep 19 2008, 01:19 GMT - Projected Bottom for the GBP/JPY
Published On Wed, Sep 10 2008, 13:48 GMT
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