As the stocks started the week on the red, due to the uncertainties about a global recession, which is iminent, the safe haven currencies are back in focus, as we watch the Dollar making a strong advance against the Euro. With these fears, we also see the crude barrel falling to the 55 dollars support.
We're waiting for the US Treasure to publish a basket of data, including the one that shows that the investors doubled their stakes in US Treasuries when the credit crisis burst in September, which highlights the safe haven status of the greenback.
Also, the Dollar index, which measures its evolution against a basket of currencies like the Euro, Yen, Sterling, Swiss Franc, Loonie and Swedish Crown, hit its two year high, due to the speculation that the US Treasure will confirm those figures. In August, the investors bought debt titles worth 14 billion dollars. In September, they bought 27.2 billion dollars.
With the traders having their eyes on 1.2500 and 1.3000, the EurUsd trading at 1.2612, ranging from 1.2580 to 1.2666. The current price is under yesterday's close at 1.2650. Checking the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are under the 200-day EMA.
The supports are watched at 1.2500 (key), 1.2324 (January 2006 high) and 1.2000 (key). The resistance are at 1.2733 (October 23rd high), 1.3000 (key) and 1.3353 (October 21st high).
Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 45 points, rebounding from the overbought area. The average volatility per hour is 150 pips. Checking the daily graphics, we see that the current price is under the 38.20% (1.3063) and over the 50.00% (1.2141) Fibonacci retracement lines.
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