Fears are Back Again

Daily Forex Fundamentals | Written by Crown Forex | Mar 02 09 15:04 GMT |

Fears and worries from the current economic recession increased causing the advance of yen and dollar as safe haven currencies. Data on Friday showed that GDP in the U.S. contracted 6.2% during the fourth quarter. Also, AIG will receive a bailout from the FED which shows that the financial crisis in the world's largest economy will deepen. The euro-dollar pair is consolidating after falling to one-week low against the green currency after EU leaders refused to provide an aid package for Eastern Europe which ignited economic woes the financial crisis will be more severe. The pair is an oversold area according to Stochastic Oscillator on the 4-hours charts and it is showing a slight tendency to rise as a correction. Currently, the euro is trading at 1.2601 recording a high of 1.2620 and low of 1.2544 along with support 1.2555 and resistance 1.2622. Relative to the pound-dollar, it is declining on the daily and 4-hours charts according to the Stochastic Oscillator 4-hour charts. The British economy is still suffering amid the undergoing global recession. PMI Manufacturing retreated to -34.7 reflecting the deteriorating status of the economy. So far, the pound is trading at 1.4192 reaching a high of 1.4288 and a low of 1.4174 with support 1.4123 and resistance 1.4246. The pair is showing decline according to the 4-hours and daily charts as fears increased the demand on the Japanese currency as a safe haven. Now, the yen is traded at 97.13 hitting a high of 97.91 and a low of 96.91 along with support 96.82 and resistance 97.81. 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.