19th October, 2008.
Finally, time shows its signals that the conditions are going to improve. The ongoing excessive demand for the USD may diminish, and the environment of normalization may come into the effect. The effective steps taken by the governments to stabilize financial institutions must start cultivating the good results now as a considerable time has passed since then.
The next week may become a week for the pair EURUSD as it seems that this pair will start off a reverse journey - strengthening the euro with weakness of US dollars. If this assumption, both from the perspectives of fundamental and technical analyses, comes true, then, buying at the dips could give substantial gains with the climbing of EURUSD towards 1.3700, 1.3800, or even more. Though, it is a fact that the USD has not been supporting the fundamentalists amidst the recent financial crisis !
With risk aversion subsided, pairs of JPY like EURJPY, AUDJPY, and GBPJPY would likely be rallying from more the technical aspect than that of the fundamental. Buying of these pairs at seemingly apparent low can be proven to be a right strategy for the coming week. Look out for the relative effect of these pairs on the USDJPY; can the anticipated USD weakness move the pair down or cannot ?
Still, USD weakness may benefit all its pairs except the USDJPY which is under uncertainty. EURUSD, GBPUSD, AUDUSD, and NZDUSD echo each other that they are all set to move up !
Finally, time shows its signals that the conditions are going to improve. The ongoing excessive demand for the USD may diminish, and the environment of normalization may come into the effect. The effective steps taken by the governments to stabilize financial institutions must start cultivating the good results now as a considerable time has passed since then.
The next week may become a week for the pair EURUSD as it seems that this pair will start off a reverse journey - strengthening the euro with weakness of US dollars. If this assumption, both from the perspectives of fundamental and technical analyses, comes true, then, buying at the dips could give substantial gains with the climbing of EURUSD towards 1.3700, 1.3800, or even more. Though, it is a fact that the USD has not been supporting the fundamentalists amidst the recent financial crisis !
With risk aversion subsided, pairs of JPY like EURJPY, AUDJPY, and GBPJPY would likely be rallying from more the technical aspect than that of the fundamental. Buying of these pairs at seemingly apparent low can be proven to be a right strategy for the coming week. Look out for the relative effect of these pairs on the USDJPY; can the anticipated USD weakness move the pair down or cannot ?
Still, USD weakness may benefit all its pairs except the USDJPY which is under uncertainty. EURUSD, GBPUSD, AUDUSD, and NZDUSD echo each other that they are all set to move up !
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