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Posted by fxrecommends@gmail.com on March 20, 2008, 4:54 am
The greenback continued its correction after the Fed's interest rate
cut. The cut was by just .75% and the 2 Fed's voters Fisher and
Plosser considered that was a big action.
The gold declined to 915 versus the US dollar and it is subjected to
go down further as the current holidays and expected light volume
which can help this correction. Also the silver is forced to have a
serious test of its recent support level as the barrier from 18.1 to
17.8 after decline from 19.5 and most commodities can face the same
case and this corrective wave can be supported by market talking about
a bubble in the commodities markets and lower inflation expectations
after unchanged core and broad figure US Feb CPI rate and weaker than
expected m/m UK Feb CPI at just .7% and the Fed's repeated comments
that the inflation is elevated but it is expected to be moderate over
the medium term.
The single currency is well below 1.56 and this can be the first
greenback weekly gain versus the single currency since the beginning
of the rally from 1.4438 in 5 consecutive weeks of rise to 1.5905. The
strong ascending trend line extended from 1.4614 to 1.4778 shows
support at 1.551. Further decline can met by 1.535 where the 38.2%
Fibonacci retracement of the same rise from 1.4438 to 1.590.5. The
severe ascending channel extended from 1.4778 to 1.5282 faces
difficulties right now and it is widely expected to do so as its
severe ascending pace.
Today, we wait for US Weekly Jobless Claims, US March Philadelphia Fed
Survey which is expected to be -18.5 and US Feb leading indicators
which is expected to be -.3% from -.1% in Jan.
Have a Happy Good Friday Holiday
Best wishes
FX-Recommends
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
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