Dollar Still Low and Stocks Open Soft

Daily Forex Fundamentals | Written by Crown Forex | Sep 22 08 14:11 GMT |

It was indeed a quiet session as all participants eye stock markets especially as the economic sense lacks fundamentals and woes still surround the long economic outrun for the rescue plan that markets have reflected negatively on the dollar despite the positive association in had as we saw on stocks.

The dollar continued to trade lower against majors and US stocks opened lower today especially as oil prices were once again on to rally which further ignited the dollar's weakness.

The euro at the hour was trading at its intraday highs set against the dollar at 1.4640s, the single currency is trading closer to its initial targets at 1.47 levels while consolidating and building a base above 1.4540s will support the euro to continue to rise. Technical indicators support the upside though approaching overbought areas that might slow the move yet divergence was not seen clearly and for that we favor still further inclines.

Sterling gained on the back of the weak dollar as the royal currency continued the upside channel to set the initial correctional target of 1.8460s managing to continue o the upside takes sterling to strong resistance as it resembles the upper band of the channel and as well the 50 days MA in addition to weakening momentum as its trading in overbought area and starting to provide diversion signals.

The USDJPY is tied to stocks movement a lot lately and especially risk aversion as today we saw the yen lose grounds against the euro and sterling yet still gained versus the dollar as the green currency remained week and the sentiment remained as well skeptic till US stocks opened. As the US session started downbeat the pair continued to trade steady around 106.50s after touching the low of 105.94 and the high at near 107 levels at 106.90 as far as US stocks continue to weigh negatively on the pair the steady notion is to prevail around those levels with downside tendency towards 105.50 and if stocks revive the 107.20s will be the strong resistance for the pair.

Crown Forex

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