ForexPros Daily Analysis July 28, 2011
The Euro is weakening against JPY & CHF
The declines in Wall Street supported the USD against most of the major currencies. Both JPY & EUR were weakening against the US dollar, but the JPY is usually stronger than the EUR, so the EUR/JPY is more likely to slide than rise. The JPY is now dealing with the support at 112, and a break-down of yesterday’s low will complete a classic reversal pattern. The target would be the support at 110. The 20 EMA is resisting the EUR at 113.5, and a break-up there will be a positive signal for the Euro.
The reversal in Wall Street almost did not affect the CHF that continues getting stronger. Many investors see Switzerland as a stable and powerful economy and they feel safer to invest their money in the CHF when the markets are shaking. Therefore, most of the symbols that contain the Swiss currency tend to go with the CHF’s direction. A break-down of the support at 115.0 can take the price down to 114 and below. A break-up at 117 would be negative signal for the CHF against the EUR.
When all currencies are weakening against the USD, you should try to find the weakest one.
Forex Trading analysis written by Bastian Rubben for Forexpros.
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