TheLFB-Forex.com A Forex Trader Portal
Currency Pair Overview:
Dollar Hits Fresh 15-Months Low
Overall, the dollar index fell to a new 15-months low on Wednesday, but the currency market bounced higher from this level as the equity and the commodity markets posted small gains in Wednesday trade. This is something that shows that the correlation between these three assets reduced in intra-day trade. The U.S. calendar was empty of any significant reports, allowing the currency market to find a temporarily fair value for the major pairs.
Dollar Index Technical View: TheLFB Member Charts
Daily chart trend: Short. Main price points: 74.00, and 75.00. Looking for: Wave C)
Prices on the dollar index have reversed over the past week around the black resistance line, influenced by a higher stock market. Currently the market is threatening the yearly lows, where a break-out will push prices lower. This is shown in the blue wave V), of an extended red wave V leg, of larger C), which may find the lows somewhere around the 74.00 area.
The euro (EUR/USD 1.4970) tested the 1.5050 area throughout the morning session, but the move was completely retraced. Since the day started the euro had a range of only 90 pips, with Wednesday being the third day consecutive day in which the pair traded at a considerable distance from the average ATR of the last few weeks of trading.
The pound (GBP/USD 1.6550) is currently trading 550 pips below the Wednesday’s opening price, being the worst gainer of the day. The pound’s sell-off begun in the middle of the European session, when the Governor of the BoE Mervyn King said that a weak pound can help the U.K. economy. With this sell-off, the pound is again trading below the 1.6600 area, which has been the main swing point area over the last six months of trading.
The aussie (AUD/USD 0.9285) took advantage of the last two days of trading to consolidate in the 0.9300 area, near the high of the current year. >From this area, the aussie can easily push higher, but for this to happen, S&P futures will need to be significantly in the green. During the upcoming Asian session, important Australian labor data will hit the newswires.
The cad (USD/CAD 1.0460) had been trading in a steep downward channel over the last three days of trading. However, the cad is now consolidating near the 1.0450 area, where the resistance trend-line of the near-term channel can be found. A break above this level will probably send the cad higher over the upcoming sessions.
The swissy (USD/CHF 1.0085) is forming a neutral doji-star candle on the daily chart, after it formed a similar pattern during the prior day of trading. Usually, doji-star formations denote the market’s indecision, which is currently high, considering that the swissy is trying to break below the support area that has been holding the market for almost 18 months.
The yen (USD/JPY 89.80) moved only during the early Asian sessions, while it spent the rest of the day trading in the 89.80-90.00 area. Over the last period, the yen struggled to break below the 88.80 area, but until now, it has failed to pull the move off. A bounce from this support will probably send the yen much higher. On the daily chart, the yen is trading below all the important moving averages, and near one-month low.