The Euro also came under pressure when unfavorable news was announced. the German GDP revised down, and several traders sold euros. The Euro area recorded highs of 1.2831, and the lowest in the area of 1.2663 at the end of European trading session, both pairs, the EUR, and GBP, were within established ranges, so that understand that yesterday’s gains will not continue to the end of the week. USD / JPY also came under pressure, several exporters sold the pair in the 98.00 area, the maximum recorded JPY in the area of 98.10 after yesterday’s gains. The pair recorded in New York minimum area of 96.25 in the morning. On the other hand, the USD / CHF remained strong, with peaks not captured two years ago in the evening session, recorded maximum in the area of 1.1919, 1.1839 and minimum in what was a quiet session, compared with the other pairs. The stock market will be in the spotlight this morning, the DJIA is maintained with some downward trend. In my view, the USD will remain a safe haven because of fears over the global financial crisis, the issue of liquidity is still the central issue, and once this happens, Americans will produce the basic data a drop in the greenback.
The G-20 meeting scheduled for the weekend, you might add a pick to the majors next week. It is expected volatility before the publication of the events scheduled. This alert. The pair was on the rise, and then reverse the trend.
The euro broke the resistance level specified in 1.4298 yesterday, but not successfully achieved the objective pursued and recorded highs in the 1.4365, just a few pips below the target of 1.4371. In the hourly chart clearly shows a downward channel. The European currency then remained in the area of 1.43. The present area of the 1.4238 support level and if it breaks that area could test the level of 1.4153 and 1.4030. However, short-term resistance level is at the 1.4371 area, and only if it breaks that could test the 1.4502 area and beyond the 1.4596. Minimum of downstream channel.
Resistance: 1.4371 a Maximum on Monday. 38.2% Fibonacci level. Dollar Pound Sterling stopped yesterday on the level of resistance of 1.5993, and reached the lowest in 1.5991. Looking at the graph below, a clear downstream channel and the pound breaking it finally ended. That is why now it is estimated that the pound would continue to rise. The zone of the 1.5946 support level present a significant short-term for today. And if it breaks that area could test the 1.5852 level and perhaps achieve the 1.5768.
However, short-term resistance level is at the 1.6029 area, and only if it breaks that area could test the 1.6097 and 1.6190. Dollar Yen The dollar-yen trying several times, failed to break the 91.78 area. For them there is no change in fundamentals. Yesterday it reached the level of 91.30. As said Friday it would be advisable to take positions after the break happens to some specific address. The support area is located in 91.06, and if the pair falls below that area could test the 90.03 and 89.55. The resistance level is at 91.78 and if the pair breaks this area will continue an upward correction and could test the 92.52 first and then 93.53. Support: a 91.06: Support intra-day, SMA 100. Area of prior resistance. a 93.53: Minimum of 19 March.