Majors Fall Back

Daily Forex Fundamentals | Written by Crown Forex | Nov 25 08 13:36 GMT |

The U.S. dollar rose back against majors today in an intraday correctional wave as currencies rose heavily yesterday against the dollar after Citigroup announced the U.S. government will guarantee $306 in bad assets in addition to a $20 billion capital injection, stocks accordingly rose heavily which boosted the appeal for carry trades yesterday. Today the U.S. will release a set of data from growth to confidence while Mr. Paulson is expected to announce new measures to help boost consumer financing after opting to change his initial plan of buying troubled assets from banks and financial institutions. The Euro recorded today a high of 1.2915 and a low of 1.2803 in thin trading so far despite the better than expected GFK confidence report from Germany, the pair faces a strong resistance level at 1.2904 which is holding the pair so far today, while the support can be located at 1.2794 which if breached will open the way for the pair to drop back to the 1.2687 support level. The British Pound also fell against the U.S. dollar as the pair recorded a high of 1.5163 and fell down to set an intraday low so far at 1.4982, the pair rebounded from the 1.5170 resistance level and managed to breach the 76.4% correctional level at 1.5056 which opened the way for further drops that might extend to reach the $1.48 levels, however breaching the 1.5056 would provide the pair with strong upside momentum to retest the 1.5170 resistance. The U.S. dollar dropped back against the Japanese Yen today as investors reduced their carry trade bets during the European session as stocks dropped back, the USD/JPY recorded a high of 96.94 and a low of 95.64, the pair failed to breach the resistance level at 96.84 which pushed it back to the 95.72 support level and the pair's movement remains restricted among those two levels so far today. 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.