by Johan Kriek (jkriek@fxinstructor.com) Key events: – 09:30GMT UK CPI – 10:00GMT Eurozone Employment – 13:30GMT US Building permits – 13:30GMT US Housing starts – 13:30GMT US CPI – 19:15GMT Fed rate decision Probability Studies: We saw how the bucky came under severe pressure the past couple of days and major resistances on the EUR and GBP was violated.
The Euro continued to push higher against the US dollar in overnight trading, breaching beyond the 1.37 level.
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Identifying Trades with DailyFX 12.16.08 (Daily FX)
Tue, 16th of December, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook As I had expected, after break the rectangle formation on hourly chart, yesterday EURUSD had a significant bullish momentum. The pair topped at 1.3726 and closed at 1.3702
The US Dollar has been punished by heavy selling pressure in recent days. The US Dollar Index, an average of the greenback’s value against six top currencies, has now retraced 50% of the most recent leg of the rally starting in late September .
The US dollar tumbled on Monday as the New York Fed’s “Empire” manufacturing index fell to yet another record low in December of -25.76 from -25.43.
The British pound rocketed over 300 points higher versus the US dollar on Monday morning, but it was not enough to keep the currency from reaching record lows against the euro for the third consecutive trading day.
The Japanese yen fell versus most of the major currencies, though USD/JPY remained heavy and consolidated below 91.00.
Looking back over the past six weeks of price action in AUDNZD, a larger trend has been broken up by periods of congestion. The pair?s current range pattern is setting up in similar form.
The dollar dropped to a two-month low against the euro and fell against other major currencies Monday as the Federal Reserve’s last interest-rate meeting of the year got under way.
on Your First Move For Tuesday January 27th
