Pound’s reversal from 1.6875 high on Tuesday area was held at 1.6755 during U.S session, to bounce up and appreciate during Asian session, although the pair seem s to be stalled at 1.6835 area.

Initial resistance level lies at 1.6835/45 (Session high Nov 9 high), and above here, 1.6875 (Nov 16 high) and 1.6950. On the downside, support levels lie at 1.6780 (session low) and below here, 1.6750/55 (Nov 17 low) and 1.6705.

GBP/JPY remains trading in a range from 149.10 and 150.35. Support levels lie at 149.00 and 148.20. Resistance levels lie at 150.45 and 151.15.

Dollar’s recovery from 88.70/75 was capped on Tuesday’s U.S. session at 89.55 high, and the pair has eased during Asian session, reaching levels right above 89.00 at the moment of writing; about 0.1% below its day opening price action.

Initial support level lies at 89.05/00 session low, and below here 88.70/75 (Nov 16/17 lows) and 88.65. On the upside, resistance levels lie at 89.55 (Nov 17 high) and above here, 89.75 (N0ov 16 high) and 89.90/00 congestion area.

EUR/JPY decline from 134.30 high on Monday extended on Tuesday to a fresh 2-week low at 132.45, and the pair attempted to pick up during Asian session although it has been capped at 133.00. Resistance levels, above 133.00, lie at 133.45 and 133.80. Support levels are 132.45 and 132.00.

The Dollar lost strength across the board in the last hours and moved away from intra-day highs but is consolidating gains. Against the Swiss Franc so far today is rising more than a hundred pips and currently trades at 1.0168/72, 0.95% above today’s opening price.

USD/CHF peaked at 1.0210, reaching the highest price in more than a week. Afterwards failed to hold above 1.0200 and fell finding support 1.0165. If the pair rises further, it could face resistance at 1.0250 and above at 1.0275. To the downside, support is located at 1.0140 and below at 1.0100/05.

The pound gained ground on the Aussie to be trading at 1.8090. The pair had earlier opened at 1.8063 and posted an intraday high of 1.8120. The pair is up 0.1% for the day.

The pound has gained strength against most currencies while the Aussie has weakened. While there was some profit taking on the Aussie earlier in the week, the currency continued to fall after wages data was released for the September quarter.

While wages grew by 0.7% this was at a slower rate, meaning that there may not be another interest rate rise until 2010.

Oil – 75.80 : Initial support at 75.60 (Intraday support) followed by 75.00 (Intraday support). Initial resistance is now at 77.60 (intraday resistance) followed by 78 (intraday resistance).

Gold – 1169 : Initial support at 1153 (Nov 23 low) followed by 1132 (Nov 20 high). Initial resistance is now at 1174 (Nov 23 high) followed by 1177 (1.764 of 985 – 1070.80 from 1026.60).

Oil & Gold (XAU) once again was supported on dips towards the $1160 level but found resistance near $1170 strong as well. Overall trading with a low of USD$1157 and high of USD$1172 before ending the New York session at USD$1169 an ounce. Was weak on concerns of plentiful supply. Crude Oil was down -$1.11 ending the New York session at $76.45.

CURRENCIES: Dollar Slips Against Rivals; Vietnam Devalues Dong.

The dollar slipped against its major rivals in Asian trading Wednesday, while Vietnam’s currency took center stage as the country’s central bank said it would again devalue the dong.

One euro bought $1.5018, up from $1.4962 late Tuesday, while $1 bought 88.22 yen, down from 88.49 yen.

The dollar’s weakness helped fuel a rise in gold futures, which rose in electronic trading on Globex. The December contract tapped a record at $1,180, buoyed by investment demand and a report that India might be buying more gold from the International Monetary Fund. (more…)

Reading a Forex quote is the beginner’s first hurdle. The quote is brief, but it packs in a great deal of useful information. And although it doesn’t make a lick of sense to a newcomer, here’s a quick, simple explanation of what it means.

This is an introductory article giving information about the Forex chart pattern of candlestick. The traders must read the candlestick charts carefully and make sure to understand the color representation and distances for escaping any kind of misunderstanding.