Cable Breaks Below 2.0000 For The First Time Since September

EUR/USD

The Euro has been hanging around 4400 for the past couple of days but the Dollar has seemed to take control again. 4hr stochastics are trending down while daily stochastics are in oversold territory. Daily stochastics have not crossed up yet so we could still see more bearish movement in the short term. Currently the pair is trading around 4342 and I would watch for the Euro to drop down to 4300 before bouncing back up.

GBP/USD

The Sterling has been taking a beating against the Dollar the past month now and today was no exception. The pair broke below 2.0000 for the first time since September. Both 4hr and daily stochastics are in oversold territory but have not crossed up yet. The Cable may continue to drop in the short term to around 1.9900. However, we could see a retracement from there as traders take profit from that level.

USD/CHF

The Dollar has been keeping its momentum going against the Swissy and once again it has made a breach of the 1550 but has still failed to reach 1600. Daily stochastics have been in overbought territory for an extended period of time now which leads me to believe that the pair may not sustain this level. 1600 looks to be a good resistance point, especially if the 100 SMA on the daily chart intersects with it.

USD/JPY

The Dollar is currently staying flat against the Yen as it teeters with the 113.50 level but can’t get above it. The 100 SMA on the daily chart is just above the 114.00 mark which makes it a very good resistance level. Daily stochastics are also in overbought territory and we have 2 bearish hidden divergences. Oh yes….this pair looks prime to drop. 4hr stochastics are trending up at the moment so look for the pair to possibly rise to 114.00 but we should see the pair make a nice drop from there.

 

I’m not really big into fundamentals but I feel that they are important to discuss. In this section I will be posting fundamental tidbits that I find interesting from various sources. If you find an article that you think would benefit everyone, please email me (Big Pippin) with your username, the article, and a link to where members can read the entire article.

Now onto the Fundamentals:
  • Fed Looks to End Credit Crunch
    • The Fed and other global central banks announce a new auction designed to let beleaguered financial institutions access more cash.
    • In essence, the Fed is giving beleaguered banks the opportunity to access funds it might need for year’s end without having to borrow money directly from the Fed at the discount rate of 4.75 percent.
    • The Fed added that it was coordinating with the Bank of Canada, European Central Bank, Bank of England and Swiss National Bank on the auction process in order to "address elevated pressures in short-term funding markets."
  • Fed Forecasts Slower Growth and More Out of Work Next Year
    • The housing collapse and credit crisis will slow economic growth and nudge up unemployment next year, the Federal Reserve said Tuesday in a first-of-its-kind forecast that some economists believe will lead to interest rate cuts early in 2008.
  • Bernanke Sees Slower US Growth
    • Federal Reserve Chairman Ben Bernanke said Thursday that a host of economic problems, including the severe housing slump, will cause business growth to slow noticeably in coming months. Bernanke told Congress’ Joint Economic Committee that the central bank is watching developments closely, but gave no signal that it’s prepared at the current time to cut interest rates even further. He stressed that the central bank was keeping all options open, saying the Fed would be closely watching economic growth and the threat of inflation.
  • "Model Behavior"
    • Super Model Gisele Bundchen has decided that she wants to remain the world’s richest model by insisting that she be paid in almost any currency but the U.S. dollar! OK… Now the dollar has been officially dissed! Sure guys like Rogers, Buffett, Gross, Butler, Wiggin, and Bonner have dissed the dollar because of the fundamentals… But when a super model decides to side with us, well then we’ve got ourselves what I’ll call… "Model Behavior"!\
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  • artpip

    good job on the analysis keep it up

  • artpip

    good job on the analysis keep it up