Friday April 9, 2010 - 20:02:36 GMT
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Euro Rebounds amid Speculation of Greece Aid
The U.S. Dollar is down
across the board at the mid-session led by the Euro which is rebounding
amid speculation that Greece is in line to receive financial aid as
soon as this week-end.
The Euro is surging to the upside as
shorts scramble to cover positions. Technically, the main trend is
still down, but chart watchers are looking for a potential breakout to
the upside once a long-term down trend line is pierced at 1.3517. There
may be an acceleration to the upside once this barrier is crossed, but
gains could be limited by a retracement zone at 1.3542 to 1.3610. The
main trend will officially turn up on a trade through 1.3591.
relief rally in the Euro is helping to boost the GBP USD. In addition,
this morningâ€™s bullish inflation report boosted the prospects for the
start of an economic recovery. The Bank of England had been saying all
along to expect a bumpy recovery and the last several months have
proved this statement to be valid. Technically, the British Pound broke
through a combination downtrending Gann angle and 50% price level. This
helped trigger an acceleration to the upside which turned the main
trend to up when it crossed the last swing top at 1.5381. The
short-term upside target is 1.5419.
The stronger Euro is helping
to pressure the USD CHF. Technically, downside momentum is indicating a
potential break to 1.0609 over the near-term. As long as the Euro
remains strong, traders expect the Swiss National Bank to refrain from
The USD JPY is trading lower at the mid-session.
Todayâ€™s weakness could be attributed to speculation that China is ready
to announce that it will allow the Yuan to appreciate against the
Dollar. An increase in the value of the Yuan is likely to help the
Japanese Yen while weakening the Australian and New Zealand Dollars.
demand for higher risk assets helped to weaken the USD CAD early in the
trading session but a less than stellar Canadian Employment report
helped trigger a short-covering rally. This morning this Forex pare
failed to take out the last swing bottom at .9975, but the trend
remains decisively lower.
Talk of U.S. interest rates remaining
low for a prolonged period of time is helping to boost demand for the
higher yielding Australian Dollar. The NZD USD is also breaking out to
the upside for the same reason. Early in the trading session, the main
trend turned up on the daily chart on the trade through the last swing
top at .7132. Upside momentum indicates this market is poised to test
the Fib retracement price at .7199.
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