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Forex Trading StrategiesDollar weaker in Asia, but still range trading!
Not much data in Asia and most major currencies stayed within the ranges from Monday.
MAJOR HEADLINES â€“ PREVIOUS SESSION
â€˘ ECB's Mersch added more hawkish rhetoric, "inflation risks very strong and rising".
â€˘ US MBA Morgage Applications out at 1.2% vs -1.6% expected.
â€˘ The US 5-year auction was generally disappointing, the 2.25 bid-cover ratio falling short of the 2.89 average, while the indirect bid fell to 26% compared to a 35.1% average.
â€˘ US Treasury Secretary Snow said China lacks the political will to bring about a more flexible FX regime and is far too cautious on the issue.
â€˘ The United Arab Emirates, the second-largest Arab oil producer, may diversify its reserves and buy more euros on expectations the currency will appreciate, the country's central bank governor said (Bloomberg).
â€˘ Japan's Industrial Production Feb, out at -1.7% vs. 0.1% expected, yoy 3.7% vs. 5.4% forecasted.
â€˘ Australia's Job Vacancies Feb, out at 4.7% vs. -1.0% expected.
THEMES TO WATCH â€“ UPCOMING SESSION
Another day with lack of direction, with EURUSD breaking the 1.2000 level, but looked very well bid, suggesting a higher base now in the 1.1980-00 area. A close above 1.2110 in the NY session today will likely take us back to the 1.2210 key resistance area.
USDJPY lower despite worse than expected Industrial Production, confirming dollar weakness. We are stuck in a 118.50-116.20 range, but we expect Japanâ€™s CPI tomorrow to attract6 some attention and possibly get closer to a break out direction.
Note: the support/resistance levels used in the matrixâ€™s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
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