After the last sessions with the stocks in the red, the investors are continuing their flight to safety, seeking refuge in the Dollar. Meanwhile, the markets continue to admit a possible global recession, the appetite for high yielders has dimmed and we see how the Euro is navigating at November 2006 lows against the greenback.
In any case, the OPEC is meeting this morning in Vienna, and a cut in the crude production will be announced. Depending on what happens, we could see important swings in the crude price, with its influence on the Dollar.
The EurUsd is trading at 1.2798, ranging from 1.2728 to 1.2871. The current price is under yesterday's close at 1.2855. Checking the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are under the 200-day EMA.
As the supports at 1.3259 (October 10th low) and 1.3000 (key) were broken, they are contemplating the next at 1.2641 (October 20th 2006 low). The resistances are watched, just in case, at 1.3668 (October 15th high), 1.3769 (October 14th high) and 1.4015 (October 2nd high).
Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 40 points, after being very oversold. The volatility per hour is 150 pips. Going with the daily graphics, we see that the current price is just under the 38.20% (1.3073) and over the 50.00% (1.2150) Fibonacci retracement lines.
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