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USD Under Renewed Selling Pressure
Tue, Jul 15 2008, 10:59 GMT
by Swiss e Trade Strategy Team
The strong bid tone for the EUR and GBP in asian trading turned to near panic selling for the USD in early european trading hours. Important resistance/support zones in the majors are now decisevily broken, which underlines the weak bias of the USD. The EUR almost completely ignored the bad economic expectations in the ZEW index of Germany, a further sign that the market turns to a more pronounced bearish mood for the Greenback.
For today we expect further signs of weakness in the USD, after some upward corrections in today`s market. See details below. Note that “market movers” such as US June PPI and US June Retail Sales are released at 14:30 CET. Also Fed`s Bernanke will testify on the semi-annual report at 16:00 CET, another source of market influence.
EUR/USD
Right now the EUR tries to break the all important high around the 1.6018 resistance level. Currently at 1.6012, we expect this resistance point to be broken, but do expect a decisive up move later today. Await a down correction to the 1.5950 level.
GBP/USD
Aftger breaking the important 2.0000 “handle” resistance the pair is attacking the last bastion of resistance, between 2.0125 (current trading price) and 2.0400. Due to high volatility right now and an overbought situation, we would wait for a correction down to the 2.0050 level or below for establishing positions.
USD/CHF
Heavy selling drove the USD near the long term lows, a major support zone. Currently trading at the upper end of this zone at 1.0060 we expect a correction first, before further attacks on this major support can set in.
USD/JPY
Currently at 105.10 the USD/JPY is trying to break it`s next support zone between current levels and 103.00. This zone is likely to form the next trading range on lower levels. Before this some upward correction to 105.60 can be expected.
Risk warning: Swiss e Trade AG shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Swiss e Trade that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.
Published on Tue, Jul 15 2008, 11:07 GMT
Archive
- Interest Rate Cuts Seem Plausible
Published On Tue, Oct 7 2008, 10:20 GMT - Greenback Steady, Some Correction Moves
Published On Mon, Oct 6 2008, 10:39 GMT - USD Sideways - Testing Long-Term Resistance
Published On Fri, Oct 3 2008, 10:02 GMT - ECB Expected to Cut Euro Rates
Published On Thu, Oct 2 2008, 10:33 GMT - Euro Weakest as Dollar Moves Up
Published On Wed, Oct 1 2008, 10:01 GMT
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Swiss e Trade AG shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Swiss e Trade that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.Interested in forex trading? forex brokerage firms!
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