Post G7 forex market
“Since our last meeting, there have been at times sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability,” the G-7’s finance ministers and central bankers said in a statement after their meeting in Washington. Next week we’ll see if this is enough for the forex market participants to stop the dollar’s free fall. Probably sooner than later the ascending triangle chart pattern will be broken to the upside and a test of the key 1.60 will follow. The pattern’s target 1.6460 seems out of reach for now but if ECB fails to assure the market that it is concerned with the strong euro we may see this number in the near future.
On the downside watch the supprt @ 1.5680, then 1.5630 and the pivotal 1.5340 level. If the latter is broken a deeper correction towards 1.50 is possible.
