The Dollar finally stands its ground….for now!

EUR/USD

Well the Euro finally decided to relax today and merely stayed at 3900 rather than making any further gains. 4hr stochastics are trending down and daily stochastics appear to be crossing down in overbought territory. It may be really close now before the Euro takes a dive. Look for the Euro to drop somewhere between 3800-3850 tomorrow.

GBP/USD

Well the Cable ended up falling to 2.0250 like I said yesterday but it found good support at its 50 EMA on the 4hr chart at around 2.0243 and bounced right back up past 2.0300. Daily stochastics are still in overbought territory but 4hr stochastics are trending up with more room before it reaches overbought territory again. Currently the pair is trading around 2.0330 and I would expect it to move slightly higher to around 2.0350 before it makes another drop back down to 2.0300 or below.

USD/CHF

The Swissy ended up bouncing off of 1800 like I said it would yesterday and is once again right around 1850. 4hr stochastics are trending up and daily stochastics have just crossed up in oversold territory. I would look for this pair to continue moving up to around 1900 or maybe even to its 50 EMA on the 4hr chart at around 1930.

USD/JPY

The Dollar made a pretty nice gain against the Yen today. My indicators are mixed once again as 4hr stochastics are in overbought territory while daily stochastics are trending up. I really don’t know where this pair might go but if that bearish hidden divergence on the 4hr chart stays in tact, then we should see the pair move lower some time soon.

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:
  • Credit market is not so great. Hank Paulson, US Treasury Secretary said in Financial Times:
    • The crisis of confidence in credit markets is likely to last longer than previous financial shocks of the past two decades, Hank Paulson, Treasury secretary, warned on Tuesday. He said the uncertainty in credit markets would last longer than the turmoil that followed the Asian crisis and the Russian default of the 1990s or the Latin American debt crisis of the 1980s. Mr. Paulson said the likely duration of the turmoil reflected the difficulties of financial services companies in valuing complex assets tainted by mortgage-backed securities.
  • Not much news lately……EXCEPT for the good ol’ housing market:
    • But we can always count on the Housing meltdown to contribute news items… It’s Sub Prime… All the time in the media… To prove that point… MarketWatch now has a daily link to sub prime, housing, etc. Which is where I found this tid-bit… A dispute between the bankrupt American Home Mortgage and Freddie Mac may cause 4,547 people to lose their homes. Those mortgages don’t have the loan files necessary to pay insurance premiums and property taxes on them.