Euro Zone Struggling Once More with Debt

Though the USD is gaining ground on the euro, the blame lies not on US strength but in euro zone weakness. The EUR failed to break above key resistance levels and promptly dropped as a result, pushing the EUR/USD pair back towards 1.4375 as of this morning.

EUR/USD

In overnight trading the pair dipped below the short term support at 1.4365 and is back above this level at the opening of European trading. Traders should be looking to buy the euro on a dip to the rising trend line from the January low and the 20-day moving average. The two coincide near 1.4300.

GBP/USD

The pair's weekly low at 1.6225 coincided with the previous trend line off the 2007 high and rising weekly stochastics hint at further gains. As such, the pair could move higher with initial targets at 1.6460 followed by 1.6880.

USD/JPY

Downside momentum is building as the pair is unable make any new highs. A move below 82.80 would target 82.00 with a further move towards the 80.20 level. Resistance is located at 83.50 and 84.00.

USD/CHF

Last week the pair dipped below the 0.8900 level but failed to make a close below it, a signal that this support level may temporarily hold. Rising daily stochastics point to a move higher, potentially to the previous lower channel line off of the October low which comes in today at 0.9070.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard