Thursday, 17 Sep 2009

Dollar Holds Despite Positive Economic Data

Despite fluctuations in the value of the USD throughout the trading day, it seems that the greenback's bearish trend may have come to an end in the short-term. We saw positive data today, with the most important being the U.S. Building Permits, which rose to 0.58M. Arguably this may be a turning point in the Dollar's fortunes for the time being. However, we will need to wait and see.

The EUR/USD cross is actually currently trading higher by 20 pips today at 1.4410. However, against the JPY, the Dollar is trading higher by 30 pips at 91.25, as we see a slight correction in the pair's behavior. The GBP/USD pair is level today at 1.6450, as market volatility seems to have slowed down as late night trading approaches.

This trading week has been rather exciting as we've seen stable trading among most pairs, but volatility in the ones most traded, which creates the most profit for investors.

EUR/USD Provides Bearish signals

• The technical indicators used are the Slow Stochastic, MACD, and Relative Strength Index (RSI).

• Point 1: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.