Greenback Mixed in the Markets

Daily Forex Fundamentals | Written by Crown Forex | Jul 28 08 11:20 GMT |

The greenback is still holding its ground in the markets as the Congress passed legislation to support the two giants Freddie Mac and Fannie Mae. They approved Henry Paulson's idea as they believed this would help the U.S out of the worst credit crisis since the Great Depression. Another support to the rising dollar is that they are expecting the GDP annualized reading scheduled later this week to show that the economy has expanded hinting for an interest rate hike. The euro is strengthening against greenback as now the focus is currently on the performance of the U.S economy and the fundamental data due to release later this week. Using the momentum indicators we see that it is providing us with an upside direction. For the EUR/USD pair we see a strong support at 1.5670 while a resistance at 1.5755 and it if breaches this point it will head towards the major resistance level at 1.5833. The pair is currently trading at 1.5738 while recording a high of 1.5743 and a low of 1.5683. As for the UK economy we see that the drop in the house price index continued to put downward pressure on the pair. We see the royal currency trading at 1.9867 around the major support of 1.9855 while a resistance at 1.9980. The GBP/USD recorded a high of 1.9912 and a low of 1.9840. The yen is moving between the support level at 107.35 and the 108.20 resisatnce as the pair is now trading at 107.71. The USD/JPY recorded a high of 108.06 and a low of 107.56, and we believe the pair will remain trading among those levels today due to the lack of major market movers, unless the American session proves otherwise. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.