The U.S. dollar jumped as much as 1.1% against the Japanese yen Thursday after Standard & Poor’s lowered its rating on Japan’s sovereign debt.
The dollar index, which tracks the U.S. unit against a basket of six other currencies, slipped back to 77.707 from 77.776 Wednesday.
Trading Setups / Chart in Focus:
The EURUSD is currently in an area of resistance that runs from about 1.3700 – 1.3800, price will need to break above this resistance to move higher from current levels, otherwise we may see a rotation back to value around the 8 or 21 day emas in the near-term.
We can see in the chart below that the 1.3430 area is now a significant support area, traders should keep an eye on this area for price action setups should price rotate back down into this support next week.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading education website.
On Wall Street today the Dow came up short of 12,000 again as mixed economic data and corporate earnings found the market struggling to find a directional bias.
The Dow closed up 4.39 points, or less than 0.1%, the S&P 500 closed up 2.91 points, or 0.2%, and the Nasdaq gained 15.78 points, or 0.6%.
Upcoming important economic announcements: 1/28/2011
5:30am EST: Switzerland – KOF Economic Barometer
8:30am EST: United States – Advance GDP q/q