Tuesday, 13 Oct 2009

Dollar Goes Bearish on all Fronts

The Dollar went bearish on all fronts in Tuesday's trading, as the USD's downward trend returned to the forefront. The USD's bearishness came today due to a variety of reasons. Traders decided to continue to take advantage of the bullish Gold and Crude Oil, which in turn put downward pressure on the USD. This was in part spurred by a slump in the global equity market today. Therefore, investors used this strategy to make some very big profits indeed. The other thing which helped drive the greenback lower today was pessimistic U.S. IBD/TIPP Economic Confidence figures showing a lower than forecast reading of 48.7, resulting in a mass sell-off of the USD.

The Dollar tumbled by 140 pips to the 1.5890 level vs. the British currency. The greenback slipped by a notable 60 pips vs. the EUR to the 1.4828 level. The U.S. currency also fell by 21 pips to the 89.70 mark against the Japanese Yen. Much of today's trends for the USD, other major currencies and Crude Oil are expected to continue as trading continues into the night. It would be a wise choice for you traders to take advantage of the current market behavior, as big returns may be made in the coming hours. It is also recommended that you follow the release of the CGPI from Japan at 23:50 GMT, as this will drive market volatility in late trading.

Attention Forex Traders

Traders may be keen to notice the action on the EUR/GBP daily chart. (1) The recent bearish cross that has formed on the pair's Slow Stochastic Oscillator shows the possibility for the pair to continue its depreciation for the day. This may be an opportunity for forex traders to go short on the EUR/GBP.