Still, the Unwinding Prevails

The dollar is still gaining against a basket of currencies and fears continue to dominate the markets as all the measures taken have yet to restore confidence and markets stability. The week that was full of surprises is about to end and not a second later you grab your breath.

The Euro is still trading within narrow ranges between the support level near 1.3542 and the resistance level at 1.3620s which is also supported by the 20 and 14 day moving averages. Direction indicators have adjusted on the technical charts whereas momentum indicators are striving to adjust and exit an oversold area. As a result, we expect trading to remain sideways after the pair had recorded a high of 1.3649 and low of 1.3495 for the day.

As for the Sterling pound, it is currently re-testing the full correction at 1.7058 for the long term ascending channel that has started on 20-11-2005 after spiking to a new low at 1.6791. A successful breakout of the mentioned resistance level will open the way for the pound towards the 1.7170s before heading towards the 1.7220s. However, we expect to see further volatility during the session as the ADX indicator shows the potential fur further downside movements while the momentum indicators are calling for an upside correction.

The USD/JPY pair is currently trading at the 100 levels after it had failed to maintain levels below the 98.50 support which resulted in a significant rebound. Risk aversion is still controlling the markets and we could see the pair decline further as hectic markets are causing a major sell off of high yielding assets.

Crown Forex

disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.