Traditionally an abrupt decline of the global stock markets and of the commodity prices was an essential support for the US Dollar. Amid analysts this kind of situation is known as decline of interest for risky assets among, which the Euro was seen quite often recently. Whatsoever any downgrading of the credit ranking of the country with leading economy might lead to fall of the global stock markets and temporarily even growth of the Euro against almost all currencies. When this kind of situation is seen analysts quite frequently make a conclusion that the Euro is trading “against the rules”. But this is nothing but an error as one of the main market laws states that the market takes everything into consideration. And here are some facts. If in recent 2 months the US Dollar has been appreciating against the background of the uncertainty in the world, the next 2 months it will apparently spend in an even faster growth. Instead of declining as a lot of people hoped, the uncertainty in the world just increased in the last few weeks. So the positions of the US Dollar as a safe harbor and an asylum asset have become even more prominent. These are the observations of analysts and we will have to check how close to reality there assumptions are.
Yesterday the Euro traded in the range of 1.2764 - 1.2829 against the US Dollar. The Resistance above is 1.2905. The Euro doesn’t leave the attempts to grow and its buyers are trying to break at least the level of 1.2950. It is quite problematic because of the Greece problems. In light of this the narrow range 1.2690 - 1.2705 might be the key support, the break of which will open the way to 1.2470 and 1.2350.
Yesterday the Pound grew against the US Dollar from 1.5880 to 1.5935 with further dip to 1.5922. This is the fourth day of the British currency growth against the Dollar. Around 1.5950 there is a strong resistance and the boundary is around 1.6058. Below there is a support of 1.5837 and in case the currency doesn’t withhold the Pound will be at full disposal of sellers and accordingly under the sales’ pressure.