Wednesday November 3, 2004 - 18:44:56 GMT
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Bush Wins Election, Dollar Continues Slide
After a whippy London session filled with election rumors, it has been conceded that George W. Bush has been re-elected to a second term. The New York trading session has seen a continue to the recent dollar decline with only a small rally when it was confirmed that Pres. Bush had been re-elected. USD/JPY opened on a downward trend @ 106.53 and has tumbled to session low of 106.00/05. Now that the election is over it seems that USD/JPY is back to its original agenda of a strong push lower although 106.00 still seems to be supported by a good amount of bids and talk of BOJ interest. EUR/USD was a one way street out of the gates heading from 1.2750 to a session high of 1.2810/15. The dollar rallied shortly after the announcement of Kerry conceding to Bush and has since settled to 1.2785. Meanwhile EUR/JPY opened at 135.85/90 and reached a high of 136.05/10. Currently EUR/JPY is sitting near session lows at 135.70/75, with the better than expected Crude Oil Inventory numbers as a likely cause of the sell off. With the election out of the way the market should get back to basics with the Friday’s Non-Farm Payroll Report as the next major indicator of the dollars direction.
We see old resistance of 1.2745/50 becoming good short term support on a 60 min EUR/USD chart. With that in mind we look to buy dips toward that level and sell rallies into the old high of 1.2845/50 which could provide some new resistance in the lead up to Friday.
GAIN AN EDGE
We look to buy EUR/USD @ 1.2755-65 with a stop below @ 1.2740/45 and a take profit level between 1.2815/30.
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