Saturday, October 10, 2009

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Oct 9 2009 Weekend Report

Posted: 09 Oct 2009 12:31 PM PDT

Click here to view the embedded video.

The weekend report takes a look at the major currency pairs as we head into the weekend. We look at the pairs from the perspective of the hourly and daily charts and try to access bias of each.

Have a great and safe weekend and thank you for choosing FXDD..

Greg Michalowski
Shawn Powell

USDJPY moves higher and higher. High for the week eyed at 89.97 but may be too much to ask

Posted: 09 Oct 2009 12:05 PM PDT

greg_fx-news00129

The price has continued to move higher and higher, now surpassing the 89.73 target from earlier posts today.  The price has retraced more than 38.2% of the move lower from the September 21st high to the low reached this week on Wednesday at the 88.00 level.  On the sell off to the low, the price moved through channel support on the daily chart at the 88.20 area, but bounced back sharply from that fall.  Yesterday, the downside was tested one last time, with the price touching the trendline support line at 88.16.  The close for the day was still down.

greg_fx-news00130

Today however, with signs of recovery, Gold coming off, oil coming off, the dollar has moved higher and the USDJPY has been the big beneficiary. The price has moved through the 100 hour MA. It has moved through the 200 hour MA at the 89.30 level, and now has surpassed the 38.2% retracement.  at 89.73.   The weeks high came on Monday at 89.97.  The high today has reached 89.87.  A move through the high would be the last accolade for the pair today. However, with the big gains today, it is likely sellers/profit takers will book the gains and we will see what the weekend brings. 

What is certain is the move lower this week and test of the channel trendline has led to an impressive bounce. I would expect that there is more room to the upside as long as the price can remain above the 89.35 level (200 hour MA).  with the next topside target coming in at 90.26.

GBPUSD breaks trendline support

Posted: 09 Oct 2009 09:53 AM PDT

greg_fx-news00127

The GBPUSD has broken the trendine at the 1.5891 level and moved to test the low for the week at the 1.5857. Look for support against the level. . Resistance now against the 1.5891 level.

Oct 9 2009 Forex Midday Report

Posted: 09 Oct 2009 09:49 AM PDT

Click here to view the embedded video.

The afternoon trade got started with the dollar finding a bid. The EURUSD support was broken against the 1.4719 level. The GBPUSD fell below trendline support at 1.5891.

$EURJPY tests 50% retracement at the 132.25 level and comes off with the EURUSD

Posted: 09 Oct 2009 09:24 AM PDT

 greg_fx-news00126

As the USDJPY has gone up today, the EURJPY has also benefited. As the EURUSD has fallen the EURJPY has reversed. 

On the way up, the price moved up to a high of 132.18.  This was just short of a Retracement level for the pair.  The 50% retracement of the move down from the high on September 21st at 135.47, to the low on October 2nd at the 129.02, came in at the 132.25.   Profit takers and sellers against the key level, reversed the trend.

As the EURUSD has fallen sharply, so has the EURJPY.  The price is now moving toward support at the 131.48 level. This was the 38.2% retracement of the same move higher.   Look for buyers against this level.

EURUSD breaks below 100 hour MA as London goes home

Posted: 09 Oct 2009 09:13 AM PDT

greg_fx-news00125

The EURUSD broke through the 100 hour MA  at the 1.4719 level (moved up from 1.4716) and the rout to the downside was on.  The price is trading at the low now and should now find upside resistance at the 1.4700 level and the 100 hour MA at 1.4719.  The target to the downside now becomes the 200 hour MA at the 1.4654 level.  With the 50% retracement support just below that level at 1.4649 also providing some support.

Volatile conditions prevail in the market. A quick look at the USDJPY, EURUSD and GBPUSD

Posted: 09 Oct 2009 07:33 AM PDT

greg_fx-news00122

The currency markets are trading in volatile, choppy action this morning. The USDJPY is moving higher, having moved above both the 100 and 200 hour moving averages.  The 200 hour MA comes in at the 89.30 level and this level should now be support. The next target is the 89.73 level for the pair.

greg_fx-news00123

The EURUSD today used the 100 hour MA as support. After pausing at the 1.4735 level, the price has moved higher still. The next target comes in at the 1.4774 level.  Look for sellers against this level today.

greg_fx-news00124

GBPUSD has moved below the 100 and 200 hour MA at the 1.5965 level and should have good sellers against this level on corrective moves higher. The support comes in at the 1.5891 level (trendline).

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