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Daily Analysis

By:   iForex
  • 2008-22-09
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Last week volatility on all the markets rocketed as different news events from across the globe increased trading volume on all the financial exchanges. The Fed Kept its fund rate at 2%, AIG along with other large financial firm plummeted, pulling down the major indices. The SEC along with England’s regulatory authorities prohibited short selling on the financial sector, Chinese wealth funds stated that they are going to repurchase shares of three of the largest banks, Russia’s president injected $20 billion into the market to help the dire situation and finally, to top volatility off for the week, the U.S treasury along with the Fed announced that they are going to create an entity that would purchase up to $700 billion of bad assets from banks, allowing those banks to remove the bad debts from their balance sheets. The bailout that was announced towards the end of the week sparked a rally across the globe sending all indices rallying. Indices like the FTSE closed Friday’s session up by 8.84%, the S&P 500 closed the session up by 4.03% and the DAX climbed by 5.56%. The currency market traded mixed following the news as carry trade currency pairs bounced up regaining some of their previous losses while the Dollar lost its strength to most of its counterparts. When analyzing recent Dollar weakness one has to take into consideration the extent of the Dollar rally over the last couple of months, meaning that any correction that is occurring at the moment is still classed as a healthy correction. Looking forward, the currency pairs will continue to take their cue from this weekend’s news, especially as the economic calendar is relatively empty today. The only major news coming out is the Retail Sales result from Canada.

Euro
EUR/USD- Pivot Points Daily EUR/USD High 1.4500 Low 1.4152 Close 1.4465 R3 1.4940 R2 1.4720 R1 1.4592 Pivot 1.4372 S1 1.4244 S2 1.4024 S3 1.3896

Support:1.4450,1.4400,1.4350 
Resistance:1.4560,1.4600,1.4650 

Japanese Yen
USD/JPY- Pivot Points Daily USD/JPY High 108.04 Low 105.37 Close 107.43 R3 111.20 R2 109.62 R1 108.53 Pivot 106.95 S1 105.86 S2 104.28 S3 103.19

Support:106.30,105.80,105.00 
Resistance:107.00,107.50,108.00 

British Pound
GBP/USD- Pivot Points Daily GBP/USD High 1.8390 Low 1.7913 Close 1.8313 R3 1.8974 R2 1.8682 R1 1.8497 Pivot 1.8205 S1 1.8020 S2 1.7728 S3 1.7543

Support:1.8270,1.8200,1.8150 
Resistance:1.8380,1.8430,1.8500 

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iFOREX is an international group of Forex companies founded in 1996 by a group of bankers and Forex dealers. In 2004, with an existing wide client base numbering in the thousands, our multilingual internet-based trading platform was launched. Since then, iFOREX has expanded its client base to tens ...

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