Dollar rallies as the Euro continues to suffer
Disclaimer: THIS MATERIAL IS NOT INVESTMENT RESEARCH AS DEFINED BY THE FINANCIAL SERVICES AUTHORITY
The US dollar has been the currency of choice in recent weeks. Traders have been aggressively selling Euro/dollar from its over bought levels. The chaos in the Euro Zone continues and until Greece gets bailed out the path of least resistance for the Euro is down.
The US dollar buying has also pressurised Sterling, pushing cable through the October low of 1.5706 last week. Cable found support at 1.5534 on Monday and the pound rallied to the 1.5760 region. The selling has continued today and the pound is currently trading back at 1.5574 against the dollar. A break of 1.5534 should see a swift move to 1.5480 where it is expected sterling will be supported in the short term. At this stage we cannot rule out a potential 50% retracement of the longer term wave up from the 1.35 low to the August high of 1.7042.
Against the Euro, Sterling encountered some resistance last week at the 1.1625 level, the 78.6% retracement from the June high to the October low. Analysts expect the pound to retest the 1.12 level before any potential further upside. The 1.12-1.13 region is now a strong support level for the pound.
Wednesday 10 February 2010, 03:49pm
Latest Posts
23 July 2010, 04:10pm
14 July 2010, 10:12am
02 July 2010, 04:20pm
23 June 2010, 02:41pm
24 May 2010, 11:13am
10 May 2010, 11:28am
04 May 2010, 04:12pm
21 April 2010, 12:03pm
14 April 2010, 12:00pm
07 April 2010, 11:35am
Our Twitter Updates
Monthly Archives
2010
July (3 entries)
June (1 entry)
May (3 entries)
April (3 entries)
March (4 entries)
Febuary (3 entries)
January (3 entries)
2009
December (1 entry)
November (3 entries)
October (2 entries)
April (3 entries)
March (7 entries)
Febuary (4 entries)
January (11 entries)
2008
December (8 entries)
November (12 entries)
October (13 entries)
September (12 entries)
August (4 entries)
July (4 entries)
June (17 entries)
May (12 entries)
Tags
The details expressed in this website are for information purposes only and are not intended as a solicitation for or a recommendation to buy or sell any currency. You should exercise your own judgment before entering into any financial transaction, including the buying or selling of foreign exchange. FairFX Plc accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.
The material set out in this website is current as of the indicated date. This material is prepared from publicly available information believed to be reliable, but FairFX Plc makes no representations as to its accuracy or completeness. All expressions of opinion are subject to change without notice. Opinion may be personal to the author and may not reflect the opinions of FairFX Plc.
FairFX Plc is not acting as your financial adviser or in a fiduciary capacity in respect of any foreign exchange transaction Before entering into any foreign exchange transaction you should take steps to ensure that you understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction.
