Forex Comments
In the last trading day, Standard & Poor’s downgraded Greece’s long-term sovereign credit rating to CCC, also maintained the outlook on the long-term rating at negative and confirmed Greece’s short-term sovereign credit rating to C. The concern of Euro zone’s default problems rises up again in the market. But non-US dollar currencies still have chances because of the week statistics of American economy and the anticipation of decline held by the economists. The rise in the cost of gasoline restrained the Americans’ consuming enthusiasm and caused a decrease in the new car selling. The sales of American retail merchants may slide in continuously 11th months.
From the one-hour chart of EUR/USD yesterday, the short line of EUR touched the bottom and rebounded, even broke through the distinct point 1.44 which was the last one before the downward trend. According to Dow Theory, the short line of Euro’s fall has ended periodically. The MA system all turned round and rose up, the index of MACD passed through zero axis, these all proved that the rebound trend of the Euro short line hasn’t ended yet. It is estimated that the short line of EUR/USD would go up high in the whole today, and would behave a fall when meet the resistance in the high position.
EUR/USD trading suggestion: Selling at high position
Strategies: Sell the euro at 1.442 as reference. SL 1.445. TP 1.433
USD/JPY could be seen from the one-hour chart yesterday that the MA system all behaved short. The rate of short line just walked out of 5 steps of fall down since it rose up on 79.6. For the next step, the rate may run an ABC rebound pattern. The index of MACD formed a rebound under the zero axis which maybe a sign for the decrease of the dropping momentum. There is a big possibility that the short line of USD/JPY would rise up a little and keep on falling.
EUR/JPY trading suggestion: buy at low position
Strategies: Buy the EUR/JPY at 80 as reference. SL 79.7. TP 81
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