5th October to 9th October 2009 Euro / USD

Posted by admin | Posted in Weekly and Daily Wake up | Posted on 06-10-2009

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From the technical perspective, the dollar closed at mixed levels. Its fall from 1.4842 to 1.4483 signals a downward trend. Another fall is still in favor as the resistance line of 1.4672 still holds well. Hence unless the rate reaches as low as the resistance level of 1.4672 it will keep falling. Once it reaches that level technically it should rise. Technical analysis of the resistance levels has been proved to be quite effective in predicting foreign exchange as well as stock levels. It if goes below 1.4483 then the support level would change to 1.4177. Fundamentally the United States is experiencing a fall in payroll level. Payroll in major sectors are declining making the economies efforts to rise from shambles look distant. The unemployment rate in US also rose to 9.8% in September. The factory orders in United States declined to 0.8 % in August. Europe, on the other hand, has been increasing the cash injections into various sectors like home market etc. Hence there is a strong support level at 1.44 to 1.45