Friday October 29, 2010 - 19:17:45 GMT
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Forex Hound - www.forexhound.com
Greenback Mostly Down Versus Majors at Mid-Session
The U.S. Dollar is trading mostly lower
against the major currencies under thin conditions. News that the U.S. economy is
still sputtering along has traders confident the Fed will implement another
round of quantitative easing at its meeting on November 2 and 3.
Traders for the most part are still betting
on the short-side of the Dollar. Although the Fed may disappoint with the size
of its allocation after this meeting, investors expect the economy to remain
weak. This means stimulus is likely to continue to flow from the Fed for some
time until the economy can get back on track. All of this is adding up to more
weakness for the Dollar.
At the mid-session, the AUD USD is trading
higher, boosted by demand for higher risk assets and short-term oversold
conditions. Technically, the Aussie is finding support inside of a retracement
zone at .9722 to .9658. An uptrending Gann angle comes in at .9710. This helps
form an important support cluster at .9722 to .9710.
Downside momentum is building in the USD
JPY which could drive this currency pair through the low for the week at 80.41.
The USD CAD is currency testing support on
a 50% level at 1.0176. A failure to hold this level could drive this market
down to 1.0129.
The daily EUR USD is in a downtrend, but
the coiling action is indicating impending volatility. 1.4080 is the new top,
1.3733 is the new bottom. Watch for a breakout on either side as this coiling
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