|
 |
Forex · News · Forex ForecastsNEWS / Forex Forecasts |
|
|
|
|
|
|
|
Dollar is still strong…Rate dynamics and recommendations on USD-CHF and USD-CAD.
|
|
13:26 06/22/2004
|
|
Dollar is still strong…Rate dynamics and recommendations on USD-CHF and USD-CAD.
Despite the forecasted and expected weakening of the dollar and testing key level of resistance at 1,2200, we were surprised at the fact that EUR/USD jumped off from the indicated level.
It is natural that massive closing out of short dollar positions started when approaching the indicated level. Besides, the dollar rise was strengthened by opening new strategy positions.
Now, you should realize that today’s forecasts might be only of short-term character. Economic calendar opens new horizons that night reduce to zero all fundamental analytical forecasts. All of the expected events are scheduled for the end of this and the beginning of the next month.
We are here to remind about those events. First of all, FOMC FRS meeting due on June 29-30. Secondly, regular Friday report on employment rate. Thirdly, Japanese quarterly report Tankan that has great significance for exchange markets (not only on yen market). There are also two events that add to it and have a geo-political coloring – giving power to local Iraq authorities and Independence Day in the U.S. together with usual threat of militant attacks.
One should also remember that the end of this month marks the end of the first half year and the second quarter, i.e. there comes a period when large investors examine their investment portfolio.
Certainly, it will be sad if much-awaited strategy rise of dollar rate continues from current levels without a pullback However, we all expect that there will be some correction of EUR-USD rate to the level of 1.2115 and probably even rise to 1,2145 prior to regular long-term decline of EUR-USD.
Recommendations: those, who bought USD/CAD from 1.3565 with minimal number of lots, we recommend keeping opened positions with protective stop somewhere close to the level of 1.3505.
In the light of forthcoming events, any recommendations on USD/CHF will be of short-term character. Here, it’s better to wait and see what happens.
Recommendations: those, who bought USD/CAD from 1.3565 with minimal number of lots, we recommend keeping opened positions with protective stop somewhere close to the level of 1.3505.
In the light of forthcoming events, any recommendations on USD/CHF will be of short-term character. Here, it’s better to wait and see what happens.
The forecast was created by trans1.
|
|
 Printer-Friendly Version
 Send This Page
 Add to Favorites
 Comments
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
