Feb 27, 2009
By: Danelle
EUR/USD continued its downward slide today. Opening at 1.2716, it reached a high of 1.2750. Then falling to a low of 1.2602, the price came back to close at 1.2675, down 41 pips for the day. Right in the middle of its recent channel, the price could move up or down when the market opens Sunday.
GBP/USD had a bit of a rollercoaster ride. Reaching a low of 1.4109 and a high of 1.4363, the pair closed at 1.4314, up just 23 pips for the day.
USD/JPY appears to have stopped its upward trend. Closing at 97.58, the pair dropped 74 pips for the day. Also, the pair reached as low as 96.85, so the bulls were really struggling to keep the price high. For today, it appears that the bears have taken control, and it is possible the retracement has begun. If Sunday is another down day, the pair could fall as low as the 94.50 level. Perhaps even farther back into the 92.00 range.
USD/CAD broke free of its recent sideways trend. Opening at 1.2524, it climbed 197 pips to close at 1.2721. We'll keep our eye on it to see if the breakout continues or if it is a false signal.
AUD/USD did continue its downward movement. Dropping to a low of 0.6337, the pair closed at 0.6393, down 73 pips from the open. We expect that the price might continue down a little bit more. Maybe to the 0.6300 level. But since the support level is also near 0.6300, the downward movement is limited and may even reverse.
Finally, USD/CHF changed its direction for the fifth straight day. Also showing a lot of indecision in the market, it opened at 1.1659. It dropped to a low of 1.1612 before closing at 1.1697, up 38 pips. Notice that yesterday it was down exactly 38 pips as well. 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.
