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Posted on September 8, 2008 at 11:39 in Short-Term Analysis by Valeria Bednarik

The dollar positive rally continues without finding a technical or fundamental base: despite the bad readings in the U.S. employment conditions last Friday and the huge gaps of Asia against it, as the US government decided to inject to Fannie Mae and Freddie Mac, the two biggest troubled mortgage companies, as much capital as needed to keep them solvent; that’s what actually is driven the Japanese yen down, as after this Sunday announcement, the US Stocks are expect to open higher.

The Eur/Usd is quoting around 1.4220, and remains bearish in bigger charts: under 1,4190 the pair will return quickly to today’s minimum at 1.4165. Resistances from actual price will be at 1.4260 that if broken, could send the pair to 1.4293 and finally the zone around 1.4325.

The Gbp/Usd also remains bearish in 4 hours charts, with a first support around 1.7605: that once broken could drive the pair first, to the zone around 1.7570 and finally to 1.7540. Only above 1.7654 we could see some bullish movements, first to the zone around 1.7685 and finally 1.7725.

The Usd/Jpy is forming a probable continuation figure, a flag in 4 hours charts: above 108.92, the pair will return to the zone around 109.10 that if broken could trigger a bullish rally to the key zone around 109.55. Only under the congestion zone around 108.20, the pair could cover last night gap, and return first to 107.95 and finally the zone around 107.70

Have a great trading day!

 

Tags: Eur/Usd Gbp/Usd

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