EURUSD – This pair broke its 6 weeks trading range to the upside, and has now clearly closed above that range.
If the fundamentals will continue to support the upside, it might head to test 1.3690 in the next week or two. However the next resistance area is around 1.3500, any trouble advancing above this area might bring the current up move to a temporary halt, or even reverse direction. We can declare the current up move officially dead if EURUSD will mange to trade well under 1.3 in the next week or two.
USDJPY– still recovering from a sudden drop to a 13-year low at 88.15.
The question remains- was this drop just a panic reaction of the market to the rejection of the US Automaker bailout plan? Or is there more then just panic to that move.
We can find out how serious this pair is about dropping further if the market will manage to make another run to the 90 psychological support level, otherwise we will probably be back to trade between 92 and above as we move further into the week.
GBPUSD- unlike EURUSD, this pair did not break its trading range last week. The only thing it managed to do was to move merely 60 pips higher from its open on Dec 7.
This had a lot to do with the strengthening of the EURGBP last week, which is trading in record highs right now. However it is possible to see this pair well above 1.5 if only EURUSD will be able to maintain its power to the upside.
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