The Close of the Week and Trading Remains of Low Volume!

Daily Forex Fundamentals | Written by Crown Forex | Oct 17 08 15:14 GMT |

A fundamental free calendar with calm trading was witnessed today after the USD was able to gain against majors with the rebound seen in stock markets. Yet even with the fundamentals concerning the housing sector being released from the US today, the dollar is still able to find its way to the upside with the exception for the yen.

US President Bush also made a speech in front of the Chamber of Commerce today saying that the actions taken by the government should help ease the credit freeze as he tried to restore confidence in the markets.

The 15 nation currency after falling against the dollar was able to slightly rebound from the 1.3408 support level as it is currently being limited by the 14 day moving average on the four hour charts at 1.3475. A breach of the mentioned resistance will open the way for the pair to target the 1.35 levels and 1.3530 respectively. Direction indicators are supporting the upside direction yet momentum indicators show a neural trend could continue to dominate movements.

As for the Royal pound, it continued to trade within narrow ranges between the resistance level at 1.7344 after the 20 day moving average was able to halt further gains at 1.7380s, and the support level at 1.7221. Even with the ADX indicator on the weekly chart pointing to the upside, it has adjusted on an intraday basis to show that the pair will continue to trade with low volatility in a sideways channel.

Similar to the pound, the USD/JPY pair is consolidating within the 100.90 support level and the 101.46 resistance level as it lacks momentum to specify a clear trend. The upside direction on the indicators have weakened and as the pair is currently finding difficulties in breaching the minor resistance level at 101.20 which is also the 20 day moving average on the four hour chart we expect the pair to continue to move sideways with low volumes as pointed out by the relative strength indicator.

Crown Forex

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