Thursday, January 25, 2007

Currencies update 25 January 2007

Currency comments below (click on charts to enlarge view)

Euro/U.S. Dollar ratio

Bullish USD on both the daily and weekly charts. The 1.50 and uptrend line on the daily chart is very important support. Long term trend the Euro still looks bullish.

British Pound/U.S. Dollar ratio

Bullish USD on both the daily and weekly charts (but not nearly as bullish as USD:Euro). Pound showing good signs of strength but bullish reversal has not yet occurred. The 2.257 ratio is VERY important support as can be seen on both the daily and weekly charts. This ratio is supported by the uptrend line. Long term trend the Pound still looks bullish.

Canadian Dollar/U.S. Dollar ratio

Bullish USD vs. Canadian dollar on both daily and weekly charts. Canadian dollar is getting hammered the past 2 months (primarily due to overbought condition combined with the removal of tax exempt status legislation for income protection trusts).

A major bearish reversal has occurred on the CDW, long term trend is down. Needs to hold 0.9784/0.8938 support levels or there is a chance it could retrace 50% of it's entire gain since it's bull run began.

Australian Dollar/U.S. Dollar ratio

Aussie dollar is fumbling for direction. Daily chart is all over the place (see past 2 trading days). Support at 77.60, resistance at 79.30. A break above or below this trading range will indicate future direction. Weekly chart still looks bullish but a break of the ascending wedge would be bearish.


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