Dow Dips To 12-year Lows. - Forex Forum

Markets for March 3, 2009 by James Whyte

In the news: March 2 – Following the falling markets in Asia and Europe, the Dow Jones fell to the lowest levels since 1997. Trading below 6,900 and closing at 6,763, the U.S. Equity markets closed down an average of 4% on the back of the government’s decision to continue bailing out the insurance giant, AIG. The markets were not battered by bad news all day as consumer spending showed an increase in Personal Spending of 0.6% in the month of January. Personal Income also rose 0.4% versus a -0.2% forecast and a previous of -0.2% in December. Another surprising figure showed an increase in savings rate to 5%, which is the highest level in nearly 14 years. Most of the day in Wall Street, the markets were driven by 90% of down volume and no support levels in the technical side.

In focus today:

USD/CHF- In this 4 hour chart we noticed a previous support line acting as a resistance line in the latest trend. Although not defined, the level around this line seems to bring resistance. The next resistance level on this line comes in at 1.1795/1.1800, and support on the current trend touches at 1.1660/50. The resistance line maybe short lived given the continued bid U.S. dollar. Tonight the Swiss will release GDP numbers which are expected to come in at -0.9%. If the actual numbers show contraction in the economy we may see the CHF get sold off.