Wednesday May 19, 2004 - 18:07:08 GMT
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DOLLAR UNDER PRESSURE ONCE AGAIN
A very busy Asian and European session saw the AUD/USD strengthen considerably and the Dollar collapse against the JPY. This due to and agreement with the U.S to boost trade and investment in Australia. This took AUD/USD from yesterday’s highs of .6880/85 to overnight highs of .7010/20 erasing the notion that AUD/USD was on a correction toward .6500. Dollar/JPY on the other hand saw a slide from above 114.00 to today’s session lows of 112.40/50 on stop loss selling and the Nikkei rallying 2.4% overnight. Today saw more consolidation in USD/JPY with temporary rallies in the Dollar being met with strong selling to curb any type of upside momentum. Euro also got a boost from the weaker Dollar climbing from overnight lows of 1.1935 to N.Y highs of 1.2040/50 before being met by central baking selling and settled in just above 1.2010. Tomorrow brings Weekly Jobless Claims and the Philly Fed to live up the N.Y session.
TECHNICALLY SPEAKING Euro/USD broke key resistance overnight of 1.1980/90 and has traded into a bid tone. On a 60 min chart the RSI remains above the neutral reading of 50 and is currently trading at 59.55. There is resistance seen at 1.2040/60 and again at 1.2080. Euro is trading above the 30,120 and 200 hr moving averages on this same 60 min chart. Short term support is seen at 1.1980/90 and 1.1950/60.
GAIN AN EDGE We look to buy Euro at 1.1980 with a stop below 1.1940 and a take profit of 1.2075
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