Monday February 28, 2005 - 18:25:58 GMT
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DOLLAR CONTINUES TO SLIDE
After some stagnant early data out of the U.S.(Personal income & spending) the main focus continued from overnight as Dollar/Jpy and JPY crosses continued to take a beating. Dollar/Jpy stayed under pressure for the entire morning and managed to climb back to 104.42/47 after putting in a fresh low of 104.10/14. US Chicago PMI for February was better than expected in the headline and the details. The number may be strong enough to help the USD reverse some (if not all) of the morning's losses against the Majors in the near term. Headline rose to 62.7 from 62.4 in January, and is back up to the highest level since November. Details were even better with significant improvements seen in the new orders indicator (rising to 68.5 from 65.8) and employment (jumping to 57.7 from 52.8). Euro chopped between 1.3240/75 for the most part due in large part to the end of month closures of positions.
There is trend line resistance seen at 104.75 and also 105.10/20 in the near term. There is also support seen at 104.00/10 and below that 103.80/90. The Relative Strength Index is waning. Dollar/Jpy remains below all its 30 120 and 200 hr moving averages.
GAIN AN EDGE
We look to buy Dollar/Jpy on a dip to 103.90 and 103.70 with a stop below 103.50 and a take profit of 104.60 and 105.10.
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