Thursday July 8, 2004 - 19:12:02 GMT
Share This Story
Forex.com - www.forex.com
SAFE HAVENS CLOBER THE DOLLAR
The currency markets overnight traded range bound for most of their session. Then when N.Y got in it appeared that they would be in for more of the same but the Dollar selling took over again and Euro popped and pressed against the 1.2365/70 a few times before getting through and testing yesterdays high of 1.2390. According to market speculation there was option protection at 1.2400 that was holding this pair down. As soon as the market got above 1.2390 they went for stops above 1.2400. Euro traded to 1.2404/08 and took out the stops and turned on a dime and traded back to 1.2390 quickly. This pair remained on the bid side for the remainder of the day with Dollar/Jpy and Dollar/Cad staying offered with selling interest anytime the Dollar popped up. Adding to the Euro buying and Dollar selling was the rumor that Homeland Security was about to raise the terror alert, this proved to be untrue for the time being. But Homeland Security Secretary Ridge did state that the U.S. had intelligence that al-Qaida was planning attacks before the November elections. This caused more flight to safe havens like CHF and GBP buying in return selling of the Greenback. Tomorrow brings no data to spark this currency market but next week should prove to be very volatile with a fair amount of data.
TECHNICALLY SPEAKING Dollar/Jpy has broken support at 108.80 and traded through, down to 108.63 which are the 30 and 200 hour moving average on a 60 minute chart. There is support at 108.50 and 108.20 in the near term. There is resistance seen at 109.20 and 109.50 as well. The Relative Strength Index is waning and the ADX is sitting just below 30.
GAIN AN EDGE We look to buy Dollar/Jpy on a dip to 108.20 with a stop below 107.80 and a take profit of 108.90.
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."