IBTimes

Further downside pressure continues to be seen after the pair declined for a second week in a row the past week following its loss of upside momentum at the 1.3332 level. This technical development now leaves a further downside threat targeting the 1.2522 level, its July 13'10 high with a break below that level opening the door for more downside weakness towards its Jun 20'10 high at 1.2466.

Forex markets started out on the same footing as they left off last week with dealers shying away from riskier alternatives. The strength apparent across the safe havens of both dollar and yen in recent days has gently removed a veil of fear behind which lurk the twin demons of a global economic slowdown and the seeds of tension within the Eurozone. However, as the morning progresses fear appears to be on the wane as stock market futures are buoyed by equity price gains in Europe.

With a slight fundamental load today, the market started the weak with mixed sentiment and tight ranged trading ahead of more clues over the outlook to be detailed this week.The euro area caught the slim attention today amid the lack of data, where investors focused on the services and manufacturing...

Latest trading recommendations. Free delayed updates: posted at 12.00 GMT, 08.00 EST) August 23rd 2010

1H: The 1H chart shows the market in a channel so far. Basically, it is consolidating after rallying from 1.0250 in the previous trading session. The resistance at 1.05 has brought the pair down slowly, compared to the sharp swing rallies.

4H: USD/CHF continues to be pressured. After a correction back to 1.06, the market has since in an impulse wave manner. After the 5-waves down, 3-waves up can be anticipated. That gives us a projected Gartley to complete the completion rally towards 1.0440, just below 50% retracement. This is also where the 50-period simple moving average resides. Note the orientation of the moving averages suggest bearish mode, and the widening of the gap suggests continuation.

Dollar-Swiss came down to honour the Support at 1.0300 and bounced back in the European session today. There are high chances of the pair moving in a narrow range of 1.0300-400 before we see it break on the either side in the coming sessions over today and tomorrow. However, please note that 1.0330-00 continues to be a very important and strong Support and a break below that may see the pair move down towards 1.0200-100 in the coming sessions over the coming days. The chances of an immediate bre...

EUR/USD Buy @1.2743 SL1.2675 TP1.2793 Sell @1.2675 SL1.2743 TP1.2625

The previous week saw a rising dollar amid worldwide concerns that the global economic recovery was cooling. This last week saw continued pessimism, but we saw less dramatic market reactions

The Dollar continue to rise against other major currencies on Friday as fears that the global economic recovery is slowing down after worse than expected U.S. jobless claims that rose to their highest level since November 2009 on Thursday caused the investors

Look at the price waves. Find the last major move (rally or sell of). It must be the most recent and the most significant move.

Technical Cross Report - vs. (2010-08-23)

The Canadian Dollar weakened to the lowest level in a month versus the Dollar after a report of Core CPI showed negative data in July, came lower than the forecast (-0.1% vs. 0.1), led the investors to sell the Canadian currency.

The Yen rose against most majors as data indicated the global economic recovery may be faltering. As long the USD/PY is trading below 86.50 level a short position is preferred and the momentum is clearly bearish, the next support is located at 84.60.

On Friday Dollar/Yen increased insignificantly, in line with the very negative Interbank sentiment at nearly +10%. The currency couple appreciated from 85.20 to 85.80 on Friday, closing the week at 85.58. Today trading is neutral for now. On the 1 hour trading is within range, and on the 3 hour chart the downward channel has slowed down. Break above Friday's top and nearest resistance 85.80 would support further recovery of the Dollar. Immediate support is Friday's bottom at 85.20, and consisten...

The Pound fell versus the Dollar and yen as concern that the global economic recovery is slowing boosted demand for the safest assets.

The Euro dropped for a second week against the Dollar to a five-week low as weaker economic data and calls by a European Central Bank official for more economic aid damped investor appetite for higher-yielding currencies.

The Dollar continue to rise against other major currencies on Friday as fears that the global economic recovery is slowing down after worse than expected U.S. jobless claims that rose to their highest level since November 2009 on Thursday ,causing investors to sell risky assets and to stick with the Dollar.

The Japanese yen rallied against most of the major currencies during last week's trading session. EUR/JPY tumbled about 100 pips, causing the pair to hit a 7-week low. The yen gained about 100 pips against the British pound as well.

Forexpros.com Daily Analysis - 23/08/2010