Tuesday, January 12, 2010

Forex: EUR trades flat vs. Greenback, Dollar strength on flight to safety

FXstreet.com (London) - Major US indices were down today, with the financial sector initiating the move south for American equities. Obama today spoke of a potential new levy on banks to help refund the bludgeoning American economy and investors feared the worst.. Nikkei opened significantly lower, off 70 basis points from previous close.

In early Asian trading the Dollar was flat across its major pairs today, broad picture looks like this: EUR/USD 1.4474/78 (-0.08%), Swissy 1.0191/93 (+0.08%), Cable 1.6153/57 (-0.05%), USD/JPY 91.18/21 (+0.21%).

EUR/USD has traded a volatile in previous session, matching 3-week highs of 1.4550 touched in a recent session before coming off and drifting well below 1.45. The Obama release and weaker stock market has damaged appetite for risk and caused a return to safe haven assets such as the Dollar. This has caused renewed Greenback strength across the board.

Valeria Bednarik, collaborator at FXstreet.com guides us on the technicals: “Technically, pair has been ranging with the downside capped by the 1.4450 area, first support for next hours. Indicators are flat on the hourly around mid levels giving no clear perspective. Pair needs to break under mentioned support or confirm an acceleration above 1.4565 to define next movements.”

The pair is up just 3 pips from the open and currently trades at 1.4478

EUR/USD (Jan 13 at 05:10 GMT)

1.4483/84 (-0.01%)

H 1.4495 L 1.4454

[?]Trend Index[?]OB/OS Index
Strongly BullishNeutral
Data updated on Jan 13 at 04:53 (15-minute timeframe)

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