Friday November 12, 2004 - 20:01:30 GMT
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The Dollar gets Slammed
The dollar got slammed in spite of good readings out of the Retail Sales sector as well as University of Michigan Survey. EUR/USD plowed from 1.2875 to 1.2985 while USD/JPY, still trading offered in light of last night’s Japanese GDP number, fell from 106.20 to 105.33. Meanwhile, USD/CAD came within a whisker of breaking through the key 1.1900 (1.1984 to 1.1910) and USD/CHF knifed from 1.1820 to 1.1695. So what just will it take for the dollar bulls to finally experience some joy in their “bottom fishing” expedition? Well, at this point it looks like it going to take a lot more of action and a lot less of talk from the European Central Bank to get the ball rolling. At this point, it appears safe to assume that the ECB’s jawboning efforts have failed in their attempt to stem the euro’s rise. However, any action taken by the ECB should not be treated lightly especially considering the last time they “came in” was athe dollar high’s back in 2000 (.8500).
TECHNCIALLY SPEAKING We see key psychological resistance at 1.3000 in EUR/USD. This past week’s high of 1.3006 is also of large significance. The downside now is solidly supported at 1.2900 and 1.2850.
GAIN AN EDGE We will sell EUR/USD at 1.3015-35 with a 1.3050 stop and 1.2865 limit.
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