Dollar Depreciating in Steady Markets...

Daily Forex Fundamentals | Written by Crown Forex | Nov 28 08 08:16 GMT |

The dollar is weakening in the markets as a result of rising anticipations that the Federal Reserve Bank will reduce interest rates to shore up growth. Also the lending might reduce the appeal of government bonds and stocks in the market as it will widen the nation's deficit making it harder for the government to inject money in the economy towards spending. The euro is rising versus the depreciating greenback despite the speculations in the market that the European Central Bank (ECB) will cut interest rates. Traders are looking forward to the reduction since they know the EU is currently in a recession and that this would spur economic growth. The EUR/USD is currently traded at 1.2940 while recording a high of 1.2943 and a low of 1.2877. For the pair we see a support at 1.2865 and a resistance at 1.2970. The momentum indicators on a 4-hour chart are providing us with an upside channel. The pound is trading in narrow ranges between the support of 1.5190 and the resistance of 1.5445 at 1.5433. As the average direction movement indicator (ADX) on a daily basis is showing us strong momentum. The moving average indicator on a four-hour chart supported by the 5 and 20 days are providing us with an upside direction. The GBP/USD recorded a high of 1.5430 and a low of 1.5364, the UK economy released its GFK consumer confidence survey for November coming in at -35 a slight rise from -36 yet this had no effect on the markets as investors are aware the nation might be facing a prolonged recession. The USD/JPY is currently traded at 95.24 while recording a high of 95.60 and a low of 95.15 yet the pair is also trading in narrow ranges while forming a sideways wave. For the pair we see a support at 94.35 and a resistance at 95.80. 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.