Tuesday October 12, 2004 - 18:28:10 GMT
Share This Story
Forex.com - www.forex.com
GREENBACK STRUGGLES TO MAINTAIN GROUND
Overnight and toward the N.Y open the Dollar strengthened against its major counterparts and gained back some of the ground that was taken away on Friday. This was in large due to the prospect of possible US repatriation flows resulting from the passing of the US international tax bill. Crude oil prices again hit all-time highs overnight for the sixth day before profit taking took place and drove oil down below 53 dollars a barrel. Euro started its slide south on the back of this noise and ran into stop loss selling through 1.2350 and again 1.2320/30 and slipped to session lows of 1.2290. Dollar/Jpy rallied to just above 110.05/10. and then faded to NY session lows of 109.65/70. Over the weekend Barron’s eluded to the fact that the Fed may put interest rates on hold after the damp payroll numbers from Friday, this seems to be why the Dollar could not gain any more ground in the NY session. Thursday and Friday will bring more important US data to the table with the release of Trade Balance and Initial Claims on Thursday and then Retail Sales, PPI and Empire State Index in Friday at 8:30 and then more with Industrial Production at 9:15am and Business Inventories and Michigan Sentiment at 10am.
TECHNICALLY SPEAKING Dollar/Jpy slipped through all its 30 120 and 200 hr moving averages with the bad payroll number and has not look back. There is trend line resistance seen at 110.10/20 and more resistance 110.40/50. on the other hand there is support seen at 109.50/60 and 109.20/30. The Relative Strength Index is a neutral 51.20. The 200 hr moving average comes in at 110.47
GAIN AN EDGE We look to buy Dollar/Jpy on a dip to 110.25/30 with a stop below 109.80 and a take profit of 111.05.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."