Fears Still Dominate the Markets

Daily Forex Fundamentals | Written by Crown Forex | Nov 12 08 14:32 GMT |

With not much action from the US economy today as the calendar remains fundamental free, we see technical movements controlling markets alongside the ongoing fear from a global recession that is increasing day after day. As investors lose their risk appetite they continue to shift their investments towards lower yielding assets with only one winner…the YEN! The Euro continues to lose strength in the markets as it is recording new intraday lows at 1.2481 but is still facing difficulties in breaching the 1.25 support level. We still see mixed signals from technical indicators as the ADX indicator is suggesting a neutral trend with tendency to the downside while the stochastic indicator is entering an oversold area showing the need for an upside correction. However note that any upside correction will be weak. As for the pound, the pair declined to record another intraday low at 1.5162 which is the key support for today where as we can see, the pair rebounded back to the upside to currently trade at the 1.5190s level. Despite the direction indicators pointing to the downside, we expect the pair to incline in correction movements before gathering enough bearish momentum to reverse back to the downside and breach the support level which will then open the way for the pair to target 1.5080. The star for today remains the yen whom is still inclining against majors in the markets taking the USD/JPY pair to currently retest the 96.60 support level which if breached will drag the pair further to the downside towards 96.20s Versus the Euro, the pair breached the 121.67 support that was pointed out to earlier and extended its losses as it currently heads towards the 120.40 level. 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.