Wednesday, March 7, 2012

Forex pairs to observe-3.6.2012

The dollar and the Yen rallied today and I believe further strengthening of those currencies to come. I’ll be looking for short opportunities on European Countries vs. Jpy, Commodity dollars Vs.Jpy and Commodity dollars Vs. Usd. Another thing to note is that there are going to be a lot of fundamentals coming out this week, so please proceed with caution. At the moment I’m looking to buy the dollar and the yen and I would like to take a closer look at Gbp.Usd and Eur.Usd.

Eur.Usd & Gbp.Usd

These pairs experienced heavy sell off today with both pairs breaking through their upwards trend line. Eur.Usd is currently retracing towards the back of the trend line around 1.3160-1.3200. The 1.3200 area has also shown in the past as strong resistance levels so expect a U-turn around this area towards the south. The bears are currently after the fib target of 1.3039 and the low around 1.2975. The cable broke through major support with momentum which seriously challenges the bullish theme we have observed lately. This pair will attempt to retrace further towards the back of the trend line and if resistance hold look for a u-turn towards the south. The fib target is at 1.5670 with strong support levels around 1.5650. Keep in mind the fundamentals tomorrow can really push these pairs one way or another.

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