BBH on the prospects of the foreign exchange market

Over the past 48 hours, the U.S. dollar managed to recover, however, after a sharp fall last week, he still is far from important technical levels. Rising correction of the dollar yesterday and today led to the closing of short positions, and then allow other currencies to form a springboard for new growth. Economic news is not a determining factor for the movement of currencies. Last week, missed the game entered the fall of the dollar pulse traders, thereby providing support for major currencies, as well as the many currencies of developing countries. This trend has continued in force. Since Friday last week began lowering the euro and the pound: the currency has fallen below the 5-day moving average (currently at $ 1.3913 and GBP1.5845), although testing 38.2% adjustment increase last week ($ 1.3811 and GBP1.5630) is yet to come. Time indicators show that the currency is in the pereprodanosti, and thus the euro and the pound now must win back some losses. Breakthrough euro / dollar above $ 1.3980 would signal further growth. By pound, break above GBP1.5860 would mean the possibility of further growth to the maximum of the last week of GBP1.5950. With regard to the Japanese currency, after an unsuccessful attempt to take the level of JPY95.28 (50% reduction in correction of last week), the dollar remained within yesterday's range. Here, at the hourly schedules of the U.S. currency also overbought: breakthrough in the case below JPY94.75 possible minima testing last week in an area JPY9386.