Thursday August 19, 2010 - 21:02:41 GMT
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U.S. Dollar Rises as Investors Take Risk Off
The U.S. Dollar is rising sharply at the mid-session as risk aversion is
back on following a surprisingly weak U.S. jobless claims report.
Euro is now trading lower after a weak attempt to rally after the
bearish U.S. report and on the heels of a better than expected forecast
for German economic growth.
Technically the Euro is still
rangebound amid confusion by traders. Buying and selling interest
appears to be even as the bulls want to buy Euros on speculation of
renewed strength in the Euro Zone economy but the bears feel the need to
sell because of a dim outlook for the global economy.
indicate impending volatility but the direction of the next move is not
clear. A breakout to the upside is likely to be met with selling
pressure at 1.3033 to 1.3104. A breakdown through support could trigger a
downside acceleration to 1.2605 to 1.2433.
The British Pound
received a boost this morning following a better than expected U.K.
retail sales report. This rally died, however, short of a breakout above
the recent high at 1.5701 and after sentiment shifted away from risky
Technically, the Sterling is trapped between a pair of
50% levels at 1.5560 and 1.5635. Major support is being provided by an
uptrending Gann angle from the 1.4229 bottom at 1.5529 today. A close
under this angle could trigger a tremendous downslide.
JPY started the day in a potentially bullish position as it tried to
build support inside of a retracement zone at 85.36 to 85.55. At one
time today, it looked as if the Dollar/Yen was readying to breakout
above the last swing top at 86.37. This move wouldâ€™ve changed the daily
trend to up.
This pair sold off sharply after the U.S. released a
surprisingly bad weekly initial claims report. U.S. equities sold off
on the news, triggering a flight to safety rally in the Japanese Yen.
Unless this market can regain the retracement zone, look for 84.73 to
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