•  
  • New York 22:22
  • London 02:22
  • Barcelona 03:22
  • Tokyo 11:22
  • Sydney 13:22

  • SignUp | Login

Forex Trading Strategies

This report has been deactivated

Dollar remains weak in European trading

Mon, Nov 27 2006, 13:28 GMT
by Saxo Bank Strategy Team

Saxo Bank  |  View company's profile


Vote:

0

0

The close above 1.3000 in EURUSD Friday gives scope for more upside in the week's to come with US Q3 GDP being key for the trend to continue.

MAJOR HEADLINES – PREVIOUS SESSION

General news

Monday trading lacks any important in both Europe and in the US. EURUSD hit a high of 1.3177 and USDJPY traded down a 115.38 low in Asia in what we expect was a thin traded market. BoJ's Fukui says does not rule out any timing for next rate hike. Says has no preset timing in mind for next rate hike. Also says focusing on data analysis to find right timing for rate hike. Says policy decision will not be linked to events such as review on outlook report in January. But had little effect on market movement. Any USD strength is be sold into heading towards the US trading session.

From Friday's Update

NZD

Carry trades are getting hurt by the pick up in volatility and we look for especially NZDJPY to remain under downside pressure. Last night trade balance in New Zealand came out at disappointing -1.167B which was twice as large as expected. Technically a close below 74.40 today would confirm a bearish outside day, which in the past has proven to be a very good indicator of more downside to come. So we look for a more downside to come with Finance Minster Mullen of New Zealand to set the pace Tuesday morning at 05:00 GMT. The last few speeches he has talked the kiwi significantly lower suggesting that he would like to see NZDUSD trading in the 0.4000 area. This should provide the necessary break in NZDJPY to set pair for a test of 0.7400 short term.

FX Orderbook

chart

Euro/US Dollar     

EURUSD  (1.3115 @ 12:30 GMT)

Support:

1. 1.2980 uper end of 6-month range

2.  1.2765 key support for rising wave lows.

3.  1.2460 daily base support

Resistance:

1.  1.3175 upper bull trend channel from March 2006.

2.  1.3480 old top from March 2005.

3.  1.3667 highs from 2005.

 Resist.

1.3383

1.3217

1.3158

1.3115

1.2992

1.2884

1.2718

Support

British Pound/US Dollar     

GBPUSD  (1.9361 @ 12:30 GMT)

Support:

1.  1.9175 outside weeky bar from June 2006.

2.  1.8950 wave lows from late November 2006.

3.  1.8500-20 lower end of the daily range.

Resistance:

1.  1.9550 highs from december 2004.

 Resist.

1.9683

1.9478

1.9399

1.9361

1.9194

1.9068

1.8863

Support

US Dollar/Japanese Yen     

USDJPY  (116.06 @ 12:30 GMT)

Support:

1.  115.55 wave low from April (key level as it would take our weeky lower high/higher high, which would confirm accelerated downside)

2.  113.35 weekly base support.

3. 109.00 key support form confirmation of a monthly downward trend.

Resistance:

1.  119.20 choppy range base from early October.

2.  119.90 old top from mid-October.

3.  121.40 old top from December 2005.

 Resist.

117.79

116.88

116.35

116.06

115.44

115.06

114.15

Support

Published on  Mon, Nov 27 2006, 13:32 GMT


Saxo Bank | Smakkedalen 2, DK-2820 Gentofte
http://www.saxobank.com/ | info@saxobank.com

Archive


Legal disclaimer and risk disclosure

Saxo Bank A/S 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 Saxo Bank 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.
Vote:

0

0


Interested in forex trading? forex brokerage firms!


Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
City Credit Capital (UK) Ltd
Contact the broker/FDM
Open a demo account		M I G BANK
Contact the broker/FDM
Open a demo account		Capital Market Services UK Ltd
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.