Feb 26, 2009
By: Ashley
EUR/USD was indecisive today. Reaching a high of 1.2810 and a low of 1.2682, it closed at 1.2717, up just 2 pips from the day. Given the recent news and instability of the pair, this could be a signal of another change in direction, but we feel while the bulls tried to take control, they lost out to the bears. The price should continue to decline in the short term.
After yesterdays huge drop, the GBP/USD rebounded a little. From the open at 1.4210, it climbed 79 pips to close at 1.4289. This could mean that the pair is returning to the upward movement from the past week. We will keep an eye on it to make sure it isn't just profit taking from the big fall yesterday. However, a major point of support is near the 1.4100 level, so day traders might be able to profit off some very short term moves throughout the day.
Once again, USD/JPY continued its upward trend. Opening at 97.39, there was very little downward movement as the price climbed slowly to close at 98.33, up almost 100 pips for the day.
USD/CAD opened at 1.2546. The pair pushed down as low as 1.2394, testing the 1.2400 support level again. The bears couldn't hold the price and it climbed back up to close at 1.2523, down 71 pips for the day. However, since the bears couldn't hold their position, the pair may be ready for an upward movement, at least short term.
AUD/USD showed a Gravestone Doji today. The price rose as high as 0.6550, testing resistance again, but closed at 0.6465, up just one pip for the day. Due to the pair testing resistance at the 0.6550 level, we feel this pair may continue its downward movement, since selling pressure is currently high.
Finally, USD/CHF changed its direction for the fourth straight day. Opening at 1.1698, it dropped to a low of 1.1595 before closing at 1.1660, down just 38 pips. This is a great market for very short term traders, or day traders, but longer term traders should be caution of entering any positions right now.
