The U.S. Dollar Index finished the week near its high after
sharp breaks in the British Pound and Euro drove it sharply higher on Friday.
The close above a retracement zone by the Dollar puts it in a position to challenge
the high for the year at 81.70. It was a volatile week for the Dollar. The
first half of the week saw the Dollar receiving selling pressure because of the
prospect of lower interest rates for a prolonged period. The Dollar posted a
strong gain during the second half of the week as renewed risk aversion
sentiment encouraged traders to dump higher yielding currencies.
The British Pound was under pressure on Friday as traders took
defensive positions out of fear of a double-dip recession in the U.K. Earlier
in the week, the GBP USD ran into a resistance zone at 1.5297 to 1.5419. The
trend remained down despite the spike higher and selling resumed following a
test of this zone. On Friday this market tested the retracement zone formed by
the 1.4780 to 1.5381 swing. This zone is 1.5080 to 1.5010. If a secondary
higher bottom is going to form, it will do so in this zone. Otherwise a break
under 1.5010 will put his market in a weak position.
The EUR USD turned the main trend down on the daily chart
following a break through the recent swing bottom at 1.3530. In addition, a
retracement zone at 1.3628 to 1.3584 was violated. Downside momentum is
building which could take this market back down to the low for the year at
1.3440. Short interest in the commitment of traders report is still large which
is contributing to the pressure. Without a Greek/European Union bailout package
in place, the fundamentals remain bearish.
Lower equity prices helped to pressure the USD JPY early in
the session before short-covering ahead of the three-day holiday in Japan turned
the Dollar/Yen higher. The selling started when this pair couldnâ€™t penetrate a
.618 level at 90.61 and a downtrending Gann angle at 90.67. This price cluster
proved to be solid resistance. Watch for volatility on Sunday and Monday while
Japanese traders take a break.
The USD CAD posted a daily closing price reversal bottom
indicating the possible start of a short-covering rally. Fridayâ€™s trading
action was driven by â€śsell the rumor, buy the factâ€ť as traders reacted as if
this report was already factored into the market. Early during the trading
session a report came out, which showed that Canadian inflation was higher than
estimated. This triggered a sell-off in the Dollar/CAD. Oversold conditions
fueled profit-taking on the break which turned this market higher. The key area
to regain is 1.0205. If the Dollar/CAD closes over this price then watch for
the start of a strong short-covering rally.
The USD CHF finished the day and the week higher. The drop
in the Euro fueled the strength on the thought that the Swiss National Bank
would have to intervene. Gains were limited on talk that the SNB would not be
able to keep interest rates at low levels for much longer. After reaching a
major 50% price at 1.0513 and holding, the Dollar/Swiss is now in a position to
retrace the recent break to 1.0701 to 1.0748.
Both the AUD USD and NZD USD finished the week higher on the
thought their central banks would hike rates before the Fed. The Reserve Bank
has already been raising rates. The Reserve Bank of New Zealand is likely to do this a
little after June. Traders were buying these two currencies to take advantage
of the interest rate differential. The weakness late in the week for the Aussie
and Kiwi are indications that traders are a little concerned about risk. Look
for these traders to pare down positions a little more next week if the Greek
financial crisis flares up or if U.S. equity markets fall hard.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 18 Dec
10:00 EZ- final HICP Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes Mon 25 Dec
00:00 Christmas Holidays
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.