U.S. Dollar In Trouble As Euro Looking To Recover

The dollar strengthened after a Chinese Foreign Ministry official said he hoped the greenback would remain stable and was 'not aware' of a plan to discuss a new reserve currency at next week's Group of Eight meeting. The dollar climbed from a three-week low versus the euro after falling yesterday when Reuters reported that China had asked to debate proposals for a new global reserve currency at the G-8 summit in Italy. The yen rose from near a two-week low against the euro on speculation a U.S. report today will show the world's biggest economy lost jobs for an 18th month, spurring demand for the safety of Japan's currency.

Trading Tactics

Buy EUR/USD on signs of a bounce on Fibonacci level.

The buying point is at 1.4088; Previous resistance is the take profit at 1.4190; Fibonacci 61.8% is the stop loss at 1.3990

The selling point is at 1.3980; Pivot point is the take profit at 1.3917; Fibonacci 50% is the stop loss at 1.4045

Technical: Euro Bounced against U.S. dollar on Fibonacci 38.2% level. The pair is trying to hold the market above 1.40 level. A move back higher could set up a test of 1.4190

Finotec Group Inc.
http://www.finotec.com/

Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.