U.S. dollar in trouble as Euro looking to recover
The dollar strengthened after a Chinese Foreign Ministry official said he hoped the greenback would remain stable and was “not aware” of a plan to discuss a new reserve currency at next week’s Group of Eight meeting.
Anthony Boyajian 
02 July 2009
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The dollar strengthened after a Chinese Foreign Ministry official said he hoped the greenback would remain stable and was “not aware” of a plan to discuss a new reserve currency at next week’s Group of Eight meeting. The dollar climbed from a three-week low versus the euro after falling yesterday when Reuters reported that China had asked to debate proposals for a new global reserve currency at the G-8 summit in Italy. The yen rose from near a two-week low against the euro on speculation a U.S. report today will show the world’s biggest economy lost jobs for an 18th month, spurring demand for the safety of Japan’s currency.
Trading Tactics
Buy EUR/USD on signs of a bounce on Fibonacci level.
The buying point is at 1.4088; Previous resistance is the take profit at 1.4190; Fibonacci 61.8% is the stop loss at 1.3990
The selling point is at 1.3980; Pivot point is the take profit at 1.3917; Fibonacci 50% is the stop loss at 1.4045
Technical: Euro Bounced against U.S. dollar on Fibonacci 38.2% level. The pair is trying to hold the market above 1.40 level. A move back higher could set up a test of 1.4190
The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
By Finotec’s professional analyst,
dealingdesk@finotec.com
EUR/USD (Hourly Chart)
Finotec Analysis Team
02 July 2009
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