Daily Forex Market Commentary: 11-19-09
On Wall Street today investors fled stocks after discouraging signs indicated a subdued economic recovery. The Dow was down about 120 points in afternoon trading. Commodity stocks took the biggest hit as the dollar rose sharply. Another sign that the market rally is becoming unstable was the Chicago Board Options Exchange’s Volatility Index, which is commonly called “Wall Street’s fear gauge”, rose more than 9 percent.
Here we see the daily chart of eur/usd is currently consolidating in a sideways wedge formation. The last two daily bars are inside Tuesday’s bar range. A breakout above Tuesday’s bar could signal resumption of the uptrend while a break below could mean a quick move down to the 1.4620 area. Has the dollar’s rally run its course for a while? Time will tell…
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