Friday April 16, 2010 - 19:58:03 GMT
Share This Story
Forex Hound - www.forexhound.com
U.S. Dollar rallies as Traders Dump Higher Risk Assets
The U.S. Dollar was trading higher at the mid-session as
traders sold higher risk assets after the SEC filed fraud charges against
Goldman Sachs. The hardest hit market was the U.S. equities which dropped 1.50 to
2.00% following the announcement. The news triggered a massive liquidation in
speculative commodities and equities, affecting almost all Forex markets.
The EUR USD, which was already trading lower at the time the
bearish news hit the market, broke sharply while filling in the gap created on
April 11th. This market is finding some support at a 50% retracement level at
1.3486. A failure to hold this level could mean an acceleration down to 1.3438.
The GBP USD is under pressure after breaking an uptrending
Gann angle at 1.5437 and a .618 retracement level at 1.5419. The daily chart
indicates this market is likely to test a 50% level at 1.5160 on April 20th.
The weaker Euro helped trigger a rally in the USD CHF. After
several attempts to break a 50% level at 1.0609, the bearish Goldman Sachs news
finally helped trigger stops above this level. Upside momentum could trigger a
further rally to a retracement zone at 1.0643 to 1.0676.
The hard break in the stock markets fueled a drop in the USD
JPY as traders liquidated their stock positions and paid back loans after
buying back the Japanese Yen. The first downside objective at 92.26 was
violated sending this market into an uptrending Gann angle at 92.02 where it
found support. Further selling pressure could take this market down to a .618
price level at 91.67,
The main trend turned up on the daily USD CAD chart after
this market crossed a main top at 1.0127. A downtrending Gann angle at 1.0122
stopped the rally. Falling crude oil and gold contributed to the weakness in
the Canadian Dollar. Further upside action could take this market to 1.0108.
The decline in U.S equities is helping to contribute to the
weakness in the AUD USD at the mid-session. Look for this market to challenge
the last main bottom at .9223 into the close. A break through this level will
turn the main trend down. Beside the liquidation of higher risk assets today,
speculation that China
may revalue the Yuan is putting downside pressure on this currency pair.
The NZD USD turned the main trend down on the daily chart
when it penetrated a swing bottom at .7086.
A break through .7150 could trigger an acceleration to the downside
later today. The daily chart indicates this market is vulnerable to a hard
correction to .6986 over the near-term.
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
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."