Tuesday, September 29, 2009

Forex: Dollar mixed pointing for more gains

Dollar closed he day mixed against major rivals, mostly gaining ground on fears about economic recovery. With Wall Street down, local shares are expected to fall also, thus limited mostly a consolidative day; watch Nikkei 225 key 10.000 points support level, as under that, risk aversion could gain strength and be reflected across the board. Euro started the day under 1.4600 level, 38.2% retracement of 1.4190/1.4842, with the 50% of that rally around 1.4510, next key support level to watch.

Under that zone, pair could reach key 1.4450 static area, also close to the 61.8% of the mentioned rally. GBP managed to close the day to the upside, yet movement remains mostly corrective after almost 700 pips straight fall in 4 days. As long as under 1.6060, bearish trend remain intact; corrections could even extend to the 1.6110 area, but price should retreat strongly from that zone, to consider bearish trend still healthy.

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