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Forex Market continues beating the Buck

Written by Administrator

Overall the USD has taken another beating in

Overnight trade. Although the EUR gave up a good deal of ground, it is working on trying to take that back. It’s the GBP that has enjoyed flows to the tiny Island. While the EURO lost ground the GBP stayed positive against the USD and the EUR, CHF and stayed even against the JPY. Is the GBP enjoying too much strength? Is it bound to collapse? Are there reasons to start selling the pair?

EUR/USD: Bouncing from 1.3250

GBP/USD: My short looking uglier

USD/JPY: I am short the pair as of this morning from 99.61

USD/CHF: Closes short signaled on 04/07/09

EUR/USD
The top red line is a target initated on 04/07/09. It’s so close that I would hate to miss it. I have decided that if there is a close above the top red Line I will hold the longer term buy position I hva on the pair, should it close below the ascending trend line I will dump it and begin looking for shorts.

GBP/USD
Though it’s getting uglier, the trade hasn’t broken key

Resistance in overnight trade and hourly charts are starting to look a bit more volatile with a few unflattering candles at the top of this last push higher. I was put out of my AUDUSD trade last night and price promptly retraced back inside my stop area, but I don’t think this pair will do it. If the pair can break the first ascending red trend line, we should at least see some

Consolidation. The line is a little steep to really produce a serious break down in price. The GBP, as mentioned above is seeing a lot of support. I have to wonder where the support is coming from. Most people think the island economy is just as bad off as the US economy, so we will have to see how this progresses.

USD/JPY
I am short the pair as of last night from 99.61 looking for a target of 97.30. I took the break of the trend line as a decidely bearish sign. It wasn’t just the break on this chart either. There was some good support broken on the daily chart as well. I have a support line drawn across the lows from 03/19/09 and 03/30/09. This move today has broken both and I am targeting the lows of 03/31/09. The light black lines above the trade were drawn but I couldn’t settle on a target so I probably wouldn’t have taken a long had it broken.

USD/CHF
What a day the pair had yesterday! The majority of the move was made by three candles, and two of them have already been retraced. The move closed the distance between the sell and low from 04/07/09 and may be targeting the ascending trend line just below there. I won’t be surprised to see a few days of consolidation here as the pair testes the line. As far as direction goes, thee is still a missed black candle from 03/18/09 that needs to be filled. That fill is began looking further and further into the future as price fell yesterday. We have a nice pendant forming on the daily charts though, signaling a good move to come.