Fundamental

Technical

Futures

Central Banks

Forex Brokers

Trading Tools


Crosses


  

USD finally weakens - Morning Session - GMT

By:   Forexpros.com
  • 08-20-2008
0
votes
 
View Comments (0)
Previous Analysis | Next Analysis
Text Size
Print
Email
Add a Comment

Today’s US Dollar Trading
• USD finally weakens
• Volumes a bit lower
• US news no help

Overnight Preview
• Look for consolidation
• USD likely to have a weaker bias mid-week

Looking Ahead to Wednesday
All times EASTERN (-5 GMT)
• 10:35am USD Crude Oil Inventories
Another light day for the Greenback.

Summary
After showing subtle signs of topping the past few days the USD finally edged lower in thinner trade after the news was out this morning. Although the fundamental picture was a mixed bag with PPI rising and housing still weak the Greenback is not attracting substantial bids as we head into the close. Cable surprised to the upside printing fresh highs for the day at 1.8681 but has since retreated a bit and remains in positive territory. Headline estimates for UK inflation are on the rise and with the expectations for a BOE rate hike sooner rather than later and unless the USD can mount a formidable advance against the cross-spreaders it appears the GBP has bottomed for the month. Aggressive traders can look to buy any weakness the next 24 hours in my view. EURO found light close-in stops above the 1.4740/50 area for a high print at 1.4793 before falling back to hold the 1.4760/70 area; traders say offers for the “sell rallies” crowd were positioned ahead of 1.4800 with large stops above suggesting that if late sellers were in today a test of further offers is likely. German ZEW and PPI data out overnight were supportive of the rate and with light news due for the rest of the week the EURO is likely to trade technically with support now around the 1.4690 area and resistance at the 1.4800 handle. Expect stops from shorts to be rolled down closer to the market likely in the 1.4820 area; expect a short-squeeze to get rolling above that number if we trade there the next 24 hours or so. Market moving data will include Philly Fed on Thursday so between now and then if EURO can’t break back the upside will likely be the course of least resistance. USD/JPY probed for stops as did USD/CHF; both pairs finding some at 109.60 and 1.0950 respectively for low prints on the day at 109.54 and 1.0907. Traders expect more stops at 1.0900 in Swissy and 109.20 in USD/JPY; both numbers likely to trade overnight in my view. The toolbox executed an exponential reversal today so aggressive traders can sell any bounce in USD/CHF. Loonie continues to hold the 1.0600 handle on fears the government will be recalled in Ottawa but the strength is likely only near-term as the rest of the USD-complex is under threat today. Look for the USD to consolidate with a lower bias overnight.

In association with Forex Trading Edge


Share:
Digg
Del.icio.us
Add to Mixx! Mixx it!
 Reddit!
 Wikio
Next Analysis: Dollar steady as commodities strengthen
Content Provided by:
Forexpros.com
With a solid background in financial markets, our goal is to provide both novice and experienced traders with neutral and unbiased information on specific financial segments, including Brokers, Fund managers, Real-time quotes & charts, Courses, Books, Software Providers, Educational & ...

DISCLAIMER:
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.


Comments
Add a Comment
Title:
Your Opinion:
Become a member and get 6 free Forex courses by Online Trading Academy!
 

 
  • Chart
 

 
  • Survey

Are you using a signal service?

Yes
No
Once in a while
What are signals?

 
ForexPros.com Newsletter
 

 
  • Sponsored Links
 
 

Special Offers: