Dollar tumbles (EURUSD rises) overnight as Gold rises, Fed comment hangover, and other news weighs
The Feds comment in the meeting minutes about the dollars orderly decline started to gnaw at traders bearish bias. This couple with some news out of China that they were reaccessing their forex policy and stimulus measures, that Russia was looking to move funds into the Canadian dollar, that Eisuke Sakakibar, formally Japan’s lead foreign exchange official, was cited as saying in a CNBC interview that the US dollar may fall against the Yen to perhaps the 85 level and that there was additional reports of interest from global nations to purchase gold from the IMF. All of which has led to an assault on the US dollar.
The EURUSD started the day toeing the 100 bar MA line on the 5 minute chart and tracked higher, using the moving average line as support before breaking away from the line (blue line in the chart above) to the upside. Along the way the price broke through resistance at 1.5000, the 1.5017-20 area, and the recent high of 1.5047 and the 2009 high of 1.5062 on its way to the high of 1.5095. The 1.5062 is now support for the pair. The upside does not have much in the way of resistance going back to 2008 levels. There are some lows at the 1.5140-45 level from Feb/Mar 2008, before the market started another leg to the upside that culminated in the EURUSD reaching its all time high price of 1.6019. The chart below shows that period where the market last moved above the 1.5000 level from Feb to August 2008.
The bias is up. The gains may consolidate,however, until the old high of 1.5062 is breached on the downside, the upside is still favored for the pair, but look for buyer on dips. It is the day before Thanksgiving but with the dollar under assault, that is not the focus (at least until this afternoon). Also although the US is off tomorrow, the rest of the world does work and the damage to the dollar is coming on the heals of action overseas not here.
Loading ...
No Responses to “Dollar tumbles (EURUSD rises) overnight as Gold rises, Fed comment hangover, and other news weighs”
Add a comment