Monday January 3, 2005 - 19:08:38 GMT
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DOLLAR STRONGER TO START THE NEW YEAR
To start things off in the New Year the market digested mixed data this morning with the release of Construction Spending that slipped to 0.4% in November and also a slightly better than expected ISM headline number(Expected @ 58 and came in @ 58.6). Bottom line is, with most of the world on holiday liquidity was again an issue and should return tomorrow with all centers back in for a true start to the New Year. Euro after rallying up toward 1.3575 sank as a major N.Y player bullied this pair through 1.3500/05 and pushed it down to session lows of 1.3440 before it propped back toward 1.3500 in light and ill-liquid fashion. Dollar/Jpy chopped between 102.55/102.95 for the most part of the session and was not willing to test 102.40/50 or 103.00/05. The rest of the week will entertain plenty for the market to get excited about with the release of Factory Orders tomorrow, non Mfg ISM Wednesday, initial claims on Thursday and the key piece of data on Friday with the release of the Payroll figures with unemployment data as well.This should set the Dollar in its general direction for the beginning of the year.
TECHNICALLY SPEAKING Euro remains in its bull channel although giving back some of its previous gains due to ill-liquid markets. There is trend line support seen at 1.3430/40 and again at1.3400/10. There is resistance at 1.3520/30 and the Relative Strength Index is waning at 40.80.
GAIN AN EDGE We look to buy Euro at 1.3425 and 1.3410 with a stop below 1.3380 and a take profit of 1.3490 for half the position and 1.3515 for the balance.
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