Stocks and Dollars

Dollar’s down trend accelerated again last week after Fed Chairman Bernanke expressed that there is no time frame for the central bank to exit from policy stimulus. Dollar index breached 73 level to new three year low at 72.83 and is set to extend towards record low of 70.70. Almost

Dollar’s down trend accelerated again last week after Fed Chairman Bernanke expressed that there is no time frame for the central bank to exit from policy stimulus. Dollar index breached 73 level to new three year low at 72.83 and is set to extend towards record low of 70.70. Almost

EUR/USD jumped to as high as 1.4880 last week before making temporary top there and retreats mildly. Initial bias is neutral this week and some consolidations might be seen first. But retreat is expected to be contained by 1.4492 support and bring another rise. Above 1.4880 will target 161.8% projection

Despite brief recovery, USD/JPY’s fall from 85.51 extended further to as low as 81.03 last week and remained weak. Initial bias remains on the downside this week and further fall should be seen to 61.8% retracement of 76.40 to 85.51 at 79.88 and below. On the upside, break of 82.76

GBP/USD rose further to as high as 1.6744 last week and remained strong. Daily MACD’s break of down trend line suggests that the pair is gaining momentum again. Hence, while some consolidations might be seen below 1.6744 temporary top initially this week, we’d expect downside to be contained above 1.6431

USD/CHF’s down trend continued last week and dropped to new record low of 0.8625. Initial bias remains on the downside this week and further fall should now be seen to 100% projection of 0.9774 to 0.8921 from 0.9339 at 0.8486 next. On the upside, break of 0.8832 resistance is needed

AUD/USD soared to another record high of 1.0976 last week and remained firm. Initial bias remains on the upside this week for 1.1 psychological level first. Sustained break there will pave the way to upper channel resistance at 1.1160 next. On the downside, below 1.0862 minor support will turn bias

USD/CAD’s down trend resumed towards the end of last week by breaking 0.9453 low and reached as low as 0.9445. Initial bias will remain on the downside this week for 100% projection of 1.0285 to 0.9666 from 0.9972 at 0.9353 first. On the upside, break of 0.9757 resistance is needed