Mar 2, 2009
By: Ashley
EUR/USD gapped down from Friday's close. Opening at 1.2613, the price continued its downward momentum and closed at 1.2561, down 52 points for the day. The downward trend is likely to continue for another few days.
GBP/USD also opened below its prior close on Friday. It continued down to a low of 1.3956 before rebounding a little to close at 1.4034. This was down 280 pips from Fridays close. Especially considering the recent drop in the US equities markets, we could see this pair continuing to fall, perhaps to new lows, or at least back into the 1.3500 range like a couple of months ago.
USD/JPY continued its downward movement that started at the end of last week. Closing at 97.07, the pair dropped 56 pips for the day. However, there was a strong push by the bulls before the bears regained control. I don't know if I would call two days a downward trend, but the day dis show great weakness on the part of the bears, so it is possible we could see the price return to its prior upward trend.
USD/CAD continued its new upward trend. The pair closed at 1.2899, up another 124 pips. We believe there is still room for upward movement, but caution is advised since we are starting to see the price approach the 1.3000 resistance level again.
AUD/USD dropped to a low of 0.6284. The pair closed at 0.6292, down 101 pips from Fridays close. As we mentioned on Friday, the pair did drop down through the 0.6300 level, but not by much. Considering the strong support at this level, we expect that we should see a strong push up in the very near future. Be careful taking new positions on this pair.
Finally, USD/CHF continued its upward movement. It reached a high of 1.1794 before closing at 1.1757, up 39 pips for the day. We believe this is a true uptrend and should continue for at least a few days, barring fundamental changes.
