Dollar Continues Slide

Daily Forex Fundamentals | Written by Crown Forex | Sep 22 08 10:00 GMT |

The greenback extends losses from this morning's session as it finds no support from investors fearing that the $1 trillion plan that is supposed to increase U.S. borrowing in the financial markets which they believe may deepen the current account deficit. The plan includes $700 billion on mortgage backed assets and offering $400 billion to secure money-market mutual funds. The euro is rising versus the falling greenback as investors are not sure if the plan is actually going help with the credit crisis or not in the U.S. economy. The EUR/USD is traded at 1.4580 while recording a high of 1.4599 and a low of 1.4452. The pair is currently traded between the support of 1.4520 and the resistance of 1.4595 while it is overbought on a four hour chart. As for the sterling, it is also gaining against the federal currency and not because of the state of the UK as we all know that the economy is close to falling into a recession. The British Economy lacks major fundamental data as the GBP/USD is traded at 1.8427 between the support of 1.8390 and the resistance of 1.8505. The pair recorded a high of 1.8467 and a low of 1.8262. Carry trades still continue as the yen falls against the euro and the pound yet is strong versus the greenback. The USD/JPY is currently trading at 106.50 while recording a high of 106.90 and a low of 105.94. The pair is still between the same support of 105.80 and the resistance of 107.15. 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 &energie