Forex Analysis

EUR/USD made new lows for the current down move, which shows that it may not be over, although the market is oversold. The hurricane Gustav was not as dangerous as it was expected and the oil prices fell to $110-111, which weighed on the euro also. GBP is under renewed preassure after Chancelor darling’s comments and boosts the USD against other majors. Some new problems for the US banking sector are emrging but probably they won’t have serious impact for the forex market. Support is @ 1.4555/30, 1.4480. Resistance is @ 1.4630, 1.4720, 1.4810. EUR/USD is trading in a flag like pattern, which looks like downside channel and probably will continue to consolidate before Thursday’s ECB meeting.

This entry was posted on Tuesday, September 2nd, 2008 at 7:30 am and is filed under Technical Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.