Lets have a look at the Forex picture early this morning on news of a potential change in the Yuan/Dollar relationship. As is to be expected, Asian currencies have been trading generally stronger (weaker USD) on the news.
US Dollar Index, yesterday – signaled some weakness at resistance
USDJPY
USDCAD – with all the political turmoil in Canada these days, it would be shocking to see the Canuk buck rise, but surprise, it has been until trade figures this morning put an end to any strength the CAD was enjoying.
USDCHF – Swiss Franc pair, trading below resistance
EURUSD – weekly chart – we can see that these levels have been tested a number of times this year – along side generally weak economic performance, one would expect the uncertainty over the adoption of the EU constitution may spark a poke through the trendline from 2002 to recent times (not drawn) – caution for longs, potential opportunity following any break.
And then things change…
USD Index – this morning following this morning’s trade numbers – a big outside bar jamming right back up and through resistance. If it holds then we’ll see an attempt to break out of the triangle to the upside and gold of course will continue its trip down, having already broken out of its triangle to the downside.
05.05.11 09:21 #