The dollar’s decline deepened after a report showed slowing U.S. growth, a day after Federal Reserve Chairman Ben Bernanke signaled the key U.S. interest rate will stay low for some time.
The euro pushed above $1.48 for the first time since December 2009. The dollar slid versus the British pound and Japanese yen. Currencies of countries that are big commodity exporters, such as the Australian dollar and Canadian dollar, climbed.
The U.S. dollar index, which is a measure of the dollar’s value against a group of six major currencies, fell to the lowest level since July 2008.
The dollar also fell to 0.8732 Swiss franc from 0.8767 Swiss franc.
Trading Setups / Chart in Focus:
The EURUSD continued to rise today as the uptrend in this market is still very healthy. We see the potential for this trend to continue into the 1.5000’s.
Pullbacks to support present buying opportunities, we can see the closest support level comes in around the 8 day EMA at 1.4650. Watch for price action trading strategies developing near value on any rotations lower in the near-term.
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 stocks closed higher, the Dow Jones transports led the charge as they closed at an all-time high, signaling the potential for more gains due to their role as an indicator of economic demand.
The Dow added 72.35 points, or 0.57 percent, the S&P 500 gained 4.82 points, or 0.36 percent, and the Nasdaq added 2.65 points, or 0.09 percent.
Upcoming important economic announcements: 4/29/2011
5:30am EST: Switzerland – KOF Economic Barometer
8:30am EST: Canada – GDP m/m
12:30pm EST: United States – Fed Chairman Bernanke Speaks
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