Friday August 19, 2005 - 05:07:20 GMT
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Tricom Futures and Foreign Exchange -
Forex: Ok, so I was wrong, but i'm sure I wasn't alone.
The US dollar was softer in Sydney morning trade against the euro and yen as traders locked in profits while expecting further gains ahead for the dollar. A solid August Philadelphia Federal Reserve Activity Index, standing at 17.5 index points from 9.6 in July and beating market forecasts of 14.0s, supported a rebound in the US dollar as traders refocused on stronger economic growth in the US.
With no economic data due out in Europe, or the US, we can expect a fairly subdued end to the week - A week where we saw the EUR/USD's short lived recovery end in an absolute drubbing overnight.
It now appears the EUR/USD will target 1.2100 on the downside, where we have small trendline support, and a 61.8% Fib level marking a retracement of previous upmove from 1.1875-1.2485.
As I said above, the overnight US data shows strong ecomonic growth, and while this persists, the market will elect to ignore the twin deficits.
Today’s Top Trades
· Sell EUR/USD around 1.2210-20, with stops under 1.2260
. Buy USD/CHF around 1.2680-70, with stops under 1.2630
For more ideas send me an email, [email protected]
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