FXstreet.com

FX Technical Strategy

2

0

Sell−by date

Wed, Nov 26 2008, 06:50 GMT
by Lloyds TSB Financial Markets Economic Research Team

Lloyds TSB Financial Markets


Market overview

Has the dollar trend turned? Whilst this is a difficult question to answer, the evidence has swung away from extended dollar strength to cautious dollar weakness. Despite many opportunities to break the low, euro dollar failed to extend beyond the 1.2330/90 floor last week and this lack of follow through has caused selling of stale dollar longs. Naturally the markets are very short term focused, but with gold over $800, and silver and platinum finally trying to base (although rhodium still has yet to find support), the evidence has swung towards dollar and yen depreciation.

Equities remain key to this strategy and, as the market remains (understandably) sceptical of the prospects for short term gains, the potential for a continued squeeze appears to be the more likely outcome. The prospects for a floor in oil and soft commodities add to the bullish scenario, which should see the Australian, New Zealand and Canadian dollars continue to gain over the coming weeks. A potential reversal set-up in the VIX adds fuel to this scenario.


Archive


Related reports

Fundamental Currencies Comments - Currencies ahead of U.S. data by ecPulse.com
Tue, Nov 24 2009, 11:34 GMT

Market Session Recaps - London Session by FOREX.com
Tue, Nov 24 2009, 11:33 GMT

Daily FX Report - The AUD/JPY fell to 81.85 and the NZD/JPY fell to 64.80 by Varengold Wertpapierhandelsbank AG
Tue, Nov 24 2009, 11:04 GMT

European Market Update - German IFO survey hits 15 month highs by TradeTheNews.com
Tue, Nov 24 2009, 11:00 GMT

Daily Trading Forecast - USD Still Waltzes to the Same Tune by Swiss e Trade AG
Tue, Nov 24 2009, 10:58 GMT

eurusd

View All

Related content

US 3Q Real Personal Consumption Expenditures increase 2.9%
FXstreet.com | Tue, Nov 24 2009, 13:35 GMT

US 3Q GDP rises 2.8%
FXstreet.com | Tue, Nov 24 2009, 13:34 GMT

CURRENCIES: Dollar Up; Euro Trims Losses On German Ifo Rise
Dow Jones | Tue, Nov 24 2009, 12:55 GMT

Forex: EUR/USD jumps to today's highs at 1.4985
FXstreet.com | Tue, Nov 24 2009, 12:44 GMT

Forex: EUR/USD bounces up from 1.4880 low and reaches 1.4950 area
FXstreet.com | Tue, Nov 24 2009, 11:35 GMT

eurusd

View All

Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
IG Markets
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account
Forex Capital Markets, LLC (FXCM)
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.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.