Jobless and Dollar!

The dollar in the US session was able to proclaim some strength as the weekly claims fell more than expected, as woes are still surrounding the labor market in the US as the Feds said that further rise in unemployment is to be seen in the US which was enclosed within the yesterday released FOMC minutes.

The Euro continued its downside wave as it needed the correction, and the drop in industrial orders helped the euro to give up more gains. In the US session the euro hit its intraday low at 1.5726 and now momentum indicators are starting to provide reversal signals as the euro is within oversold areas. On a daily basis the euro set the high early at 1.5814 and though the euro is in an overbought area still no clear signs of reversals are seen confirming the intraday basis which now the euro that trades at 1.5750s might attempt to 1.5770s before declining once again to the downside.

The Pound though was hammered with negative growth data yet the positive momentum was confirmed from rising inflationary pressures confirming the steady rates for the BoE. The upside wave that was seen since the morning in the US session let the pound consolidate at its intraday highs set at 1.9849 as the pound attempted to breach above 1.9850s yet has failed intraday momentum is weakening and shows the pound might drop and on a daily basis sterling is in an overbought area the pair targets 1.9870s while now 1.9770s is a critical level for the pound and if it manages to continue to trade above it and closes higher especially on a weekly basis and new upside wave will be confirmed validating the breach of the upside band for the descending channel.

The USDJPY is still within the upside wave since the morning trading now at its highs near the peak set at 103.76 though on an hourly basis the pair is excessively overbought which might take it down slightly until 103.40s before the upside continuation as now the daily basis is confirming upside headings from an oversold areas which targets 104 levels.

Crown Forex

Posted in: Economy,Finance and Investment,Forex