Wed, 29 Sep 2010 00:00:00 +0200

USD Tumbles Against Rivals Following Disappointing News

A disappointing US consumer confidence report released yesterday, caused the ?greenback to take heavy losses against virtually all of its main currency rivals. The ?dollar appears to have stabilized in overnight trading, but only after it hit a more ?than 2-year low against the Swiss franc. Analysts are doubtful about whether the ?USD can bounce back from these losses in the near future.?

EUR/USD

Most technical indicators show this pair in overbought territory, meaning a downward ?correction is likely to take place. The RSI on the 8-hour chart is right on the border of ?the upper resistance line, while the Stochastic Slow on the 4-hour chart is very close to ?forming a bearish cross. Traders may want to go short on this pair today.?

GBP/USD

After a heavy trading day yesterday, most technical indicators show this pair in ?neutral territory. These include the Williams Percent Range on the 4-hour chart, and ?the Stochastic Slow on the 8-hour chart. Traders may want to take a wait and see ?approach with this pair today, as a clearer picture is likely to present itself later on.?

USD/JPY

The Relative Strength Index and Williams Percent Range on both the 4 and 8-hour ?charts are showing this pair well into oversold territory. Typically this means that a ?bullish correction is likely to occur in the very near future. Traders may want to go ?long with tight stops in their positions today.?

USD/CHF

After a steep drop yesterday, technical indicators show that this pair may be poised ?for an upward correction. The Williams Percent Range on the 4-hour chart and the ?MACD on the 8-hour chart both show the pair in oversold territory. Going long may ?be the preferred strategy today.?

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