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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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Another twist of international tension…Forecast on the dynamics of USD/CHF and USD/CAD rate.
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10:57 03/23/2004
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Another twist of international tension…Forecast on the dynamics of USD/CHF and USD/CAD rate.
As we have mentioned it many times before, any geopolitical tensions put pressure on the rate of the dollar.
The fact is that there is almost no region in the whole world to where the U.S. would not spread its financial interests. Moreover, the situation in the Near East, which is the main supplier of energy raw materials for the fist world economy, finds its reflection on American financial markets.
The last events in the world show impetuous rise of tension in the given region and the threat of new terrorist attacks that can be conducted in Europe and the U.S., as well as in Asia.
It is natural that the given facts do not inspire investors to purchase American assets and Swiss franks and precious metals are gaining greater demand now.
For example, EUR/CHF rate has lost more that three patterns in the recent days and is likely to continue its fall. Troy ounce of gold rose almost 8%, having reached the level of 418.10 dollars. Besides, fall of American stock exchange indexes put the pressure on the dollar.
Situation was aggravated by assassination of sheikh Yassin, the leader of Palestinian militant grouping Hamas, by Israel. The fact that European leaders disapproved of this action but restraint support came from over-seas also makes the dollar more vulnerable.
All of the mentioned above creates the background for changing the overall market sentiment in favor of European and Asian currencies. That is why we recommend waiting for more clear signals and not making unreasonable trade decisions.
As for the current market situation, we recommend keeping postponed order for purchasing USD/CHF from 1,2766, though its realization gets less possible because of geopolitical situation.
Continue keeping long positions on USD/CAD, protective stop should be kept at 1,3235. Steady rise higher than 1,3445 will enable the market to reinforce “bulls” army and to create real preconditions for overcoming key line of resistance, which is now close to 1,3590.
As for the current market situation, we recommend keeping postponed order for purchasing USD/CHF from 1,2766, though its realization gets less possible because of geopolitical situation.
Continue keeping long positions on USD/CAD, protective stop should be kept at 1,3235. Steady rise higher than 1,3445 will enable the market to reinforce “bulls” army and to create real preconditions for overcoming key line of resistance, which is now close to 1,3590.
The forecast was created by trans1.
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