ForexAnalysis

Read The Daily Forex Analysis Today’s US Dollar Trading • Greenback unable to extend gains • Volumes light • Big news out tomorrow may have sidelined traders Overnight Preview • Look for two-way action, consolidation • Possible follow-on selling in Asia to start Looking Ahead All times EASTERN (-5 GMT) • 8:30am USD Building Permits • 8:30am USD PPI m/m • 8:30am USD Core PPI m/m • 8:30am USD Housing Starts • 10:00am USD FOMC Member Fisher Speaks Summary Heading into the close for Monday the USD is slightly mixed as pressure from equities rubs a little shine off the bull’s horns; most of the major pairs are slightly lower to about unchanged on the day. Although sentiment remains firm for the Greenback there are signs that the current rally is about to falter; the biggest indicator is low volume in my view. Most pairs had a flurry of activity early ahead of the London fix but have since slowed down measurably from early order flows. Cable is holding firm around the 1.8650 area after making a run for lows but was unable to test the overnight Asia lows still in place at 1.8624; a late rally was turned back from the 1.8680 area and the rate remains steady in the middle of the range. Forex Traders report the GBP is still tracking EURO higher and lower but the EURO remaining firm at the 1.4700 area after a brief spike to fresh New York highs at the 1.4730 area suggest the rate is possibly building for a short-squeeze. EURO has a load of news due tomorrow which is expected to be neutral-to-bearish for the rate so depending on how much downside the rate can manage overnight on the news will likely determine if a run for stops under the 1.4620 area is in store; if holding longs from this morning around the 1.4700 handle is fine for now. Tomorrow’s US data is likely to cause a bit of volatility as well so if the EURO can hold current lows after the news there is a good probability the rate will make a run for high stops likely in the 1.4750 area or higher by mid-week. USD/JPY was under pressure off the highs all day and made new lows for the day at 109.96 but saw a bit of bids show up to hold the 110.00 handle; traders note volumes were thin on the move making for potential volatility near-term. Look for the rate to find stops under the 109.20 area to be in size and a liquidating break to develop if the rate can’t score a new weekly high above the 110.60/70 area; OK to hold shorts for now as well. Loonie came off the lows for the day to trade higher as dropping oil prices continued to attract bids but the rate is showing signs of weakness in my view; OK to hold shorts with stops currently working. In my view, the USD is looking a little “toppy” today and if large bids don’t show up overnight or during the news the Greenback is looking vulnerable for a correction. Look for a quiet overnight session and possibly some follow-on selling to start Asia; the “buy the dip” crowd will likely support the USD overnight so expect some two-way action near-term. GBP/USD Daily Resistance 3: 1.8780 Resistance 2: 1.8750/60 Resistance 1: 1.8720/30 Latest New York: 1.8640 Support 1: 1.8620/30 Support 2: 1.8600 Support 3: 1.8580 Comments Rate struggling to hold gains but is off the weekly low from last week; today’s open shows net bid follow-through but some weakness. Look for more upside this week. Possibly shorts covering ahead of the news due Tuesday. Rate bouncing off two-year lows and is an excellent buy in my view. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Get ready for the rally. Data due Tuesday: All times EASTERN (-5 GMT) EUR/USD Daily Resistance 3: 1.4850 Resistance 2: 1.4820/30 Resistance 1: 1.4770/80 Latest New York: 1.4695 Support 1: 1.4670 Support 2: 1.4650/60 Support 3: 1.4620/30 Comments Stops-driven sell-off scores new low last week but rate bounces smartly suggesting at least a small interest in bottoming. Failure to hold above the 1.4700 handle likely to draw in late shorts. Traders report large bids on the drop but volumes died later, lower oil pricing pressures prices all day. Traders report model/macro accounts continue selling the rate. Traders suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Larger names buying last week traders say. Likely the rate has flushed all longs. Aggressive traders can buy this dip for a return to resistance. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw. Data due Tuesday: All times EASTERN (-5 GMT) 2:00am EUR German PPI m/m 5:00am EUR German ZEW Economic Sentiment 5:00am EUR ZEW Economic Sentiment Join us for the Afternoon US Dollar Wrap-Up daily at 3:15 pm Central/Chicago time (GMT -6) Forex Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. www.forexpros.com

Daily Forex Analysis Overnight Asia/Europe • Quiet start overnight, USD range-bound • Volumes lower • Technical trade dominates due to lack of news Today’s Economic Reports All times EASTERN (-5 GMT) • 1:00pm USD NAHB Housing Market Index Looking Ahead All times EASTERN (-5 GMT) • 8:30am USD Building Permits • 8:30am USD PPI m/m • 8:30am USD Core PPI m/m • 8:30am USD Housing Starts • 10:00am USD FOMC Member Fisher Speaks Summary The USD is mixed to open New York after a relatively quiet start in Asia last night; no real economic news was released leaving the Greenback to trade on mostly technical factors. Now that the panic-buying of USD has largely subsided from late last-week forex traders are holding the majors in a consolidative pattern to start the week. Normally seen on the bid for EURO during the sharp sell-off recently, major Swiss names seen on the offer overnight around the 1.4650 area traders say; high prints in the rate at 1.4769 in Asian trade. US investment houses seen on the bid this time most likely covering recent shorts; traders note cross-trading for non-USD pairs pressuring EURO as well. Normally following EURO lower but firming today, Cable has held last week’s low so far today with a low print at 1.8624 and the toolbox is flashing an exponential buy this morning. Aggressive traders can buy GBP/USD at the 1.8680 area or better during the day. Tuesday will likely be a big day for both EURO and GBP due to the fundamentals being released making Monday a set-up day. With the heavy selling pressure in both pairs recently a short-squeeze is overdue; in my view getting a position on today ahead of potentially negative news for the USD with corresponding positive news from overseas makes for a good probability of higher EURO and GBP pricing mid-week. USD/JPY is lower making lows under the 110.00 handle in Asia overnight; bids seen from US names traders say as well as importers. The rate is currently holding inside range on light volumes suggesting the rate is still seeing a potential top under the 110.50 area. OK to hold shorts through the day. USD/CAD opened lower and dropped to a 1.0542 low print; if holding shorts you would have added to the rate on the break to 1.0560 area. Currently a bit higher on the day around the 1.0600 handle traders note a lot of technical trade keeping the rate two way to start New York. After taking losses this month, the sucker-rally in the USD appears to be finally faltering putting us in a position to recover during the second half of the month. Look for the USD to weaken during the week but still place stops on open positions; volatility has increased so be protected from whipsaw. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 1.8780 Resistance 2: 1.8750/60 Resistance 1: 1.8720/30 Latest New York: 1.8671 Support 1: 1.8620/30 Support 2: 1.8600 Support 3: 1.8580 Comments After all said and done the rate ends off the lows with a strong buying wick Friday, today’s open shows net bid follow-through. Look for more upside this week. Possibly shorts covering ahead of the news due Tuesday. Rate bouncing off two-year lows and is an excellent buy in my view. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Get ready for the rally. Data due Tuesday: All times EASTERN (-5 GMT) forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.4850 Resistance 2: 1.4820/30 Resistance 1: 1.4770/80 Latest New York: 1.4716 Support 1: 1.4700/10 Support 2: 1.4650/60 Support 3: 1.4620/30 Comments Stops-driven sell-off scores new low last week but rate bounces smartly suggesting at least a small interest in bottoming. Traders report large bids on the drop, lower oil pricing pressures prices all day. Traders report model/macro accounts continue selling the rate. Traders suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Larger names buying last week traders say. Likely the rate has flushed all longs. Aggressive traders can buy this dip for a return to resistance. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw. Data due Tuesday: All times EASTERN (-5 GMT) 2:00am EUR German PPI m/m 5:00am EUR German ZEW Economic Sentiment 5:00am EUR ZEW Economic Sentiment Join us for the Morning FOREX Briefing daily at 7:45 AM Central/Chicago time (GMT -6) Forex Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading • USD whipsaws hard • Volumes patchy • GBP falls to new lows Overnight Preview • USD likely to consolidate • Volumes likely to drop ahead of US data tomorrow Looking Ahead All times EASTERN (-5 GMT) • 8:30am USD Core CPI m/m • 8:30am USD CPI m/m • 8:30am USD Unemployment Claims • 10:35am USD Natural Gas Storage • 2:30pm USD FOMC Member Stern Speaks Summary Despite the lack of serious fundamental news the USD whipsawed today taking out stops on both sides today. Initially weaker overnight the Greenback rallied a bit on follow-through buying but ran into ample supply as Yen-crosses dominated forex trade forcing USD longs to take a breather for a bit. After US data was out the USD rallied against the Yen breaking into stops above the 109.30 area for a high print at 109.75 before dropping back. Most of the USD pairs rallied with the Yen but once stocks declined and oil rallied a bit the luster wore off the Greenback and the majors began to recover. Making a fresh US high late in New York EURO rallied through stops at the 1.4940 area for a return to the higher ranges seen overnight. Traders note that the big stops to protect the shorts start around the 1.4990/1.5000 area and perhaps a little higher. The rate will no doubt make a run for those as EURO now looks like a reversal is in the works. Cable had another break lower as the bears would not quit just yet making a low print at 1.8638; almost a two-year low. With conditions dramatically weaker now in the US than they were in 2006 it makes you wonder where this USD strength is coming from. Most traders are looking for the Greenback to fade near-term and point to the technically oversold readings as a clue that a rally is due. Non-USD crosses for Sterling were also whipsawed suggesting that the market is full of late traders who are likely to get spanked. In my view, this morning’s additional romp higher against GBP as well as the other pairs later in the day is simply evidence of a reactionary market and not an orderly one. Today’s USD data was not favorable to the Greenback and the whipsaw during the day points to a market driven by emotion rather than reflecting market conditions. Once the weak traders are scared out the USD will likely resume a steadier pace of regular depreciation near-term. Look for consolidation tonight and US data to be unfriendly in the morning. GBP/USD Weekly Resistance 3: 1.8950 Resistance 2: 1.8900/10 Resistance 1: 1.8880 Latest New York: 1.8707 Support 1: 1.8630 Support 2: 1.8600 Support 3: 1.8580 Comments Rate falls hard on dovish BOE report; highs ahead of there at 1.9038 suggesting bid interest was there but was panicked. Rate on two-year lows and is an excellent buy in my view. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Stopped out on new lows, OK to look at the long side again tomorrow Data due Thursday: All times EASTERN (-5 GMT) EUR/USD Weekly Resistance 3: 1.5050 Resistance 2: 1.5000/10 Resistance 1: 1.4980 Latest New York: 1.4921 Support 1: 1.4800/10 Support 2: 1.4760 Support 3: 1.4720/30 Comments Rate usually tracking GBP lower but unable to extend losses despite good selling. Russians and Swiss names buying on the dip; inside range day suggests rate is near a bottom. Model accounts selling in EURO and GBP traders say suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Larger names buying traders say. Likely the rate has flushed all longs. Macro accounts seen selling on the break Friday. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw. Data due Thursday: All times EASTERN (-5 GMT) 2:00am EUR German Prelim GDP q/q 2:00am EUR German Final CPI m/m 2:45am EUR French Prelim Non-Farm Payrolls q/q 2:45am EUR French Prelim GDP q/q 4:00am EUR ECB Bulletin 5:00am EUR CPI y/y 5:00am EUR Core CPI y/y 5:00am EUR Flash GDP q/q Join us for the Afternoon US Dollar Wrap-Up daily at 3:15 pm Central/Chicago time (GMT -6) Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Daily Forex Analysis Today’s US Dollar Trading • USD ends mixed-to-weaker • Official names selling rallies • Majors ready to rally Overnight Preview • Look for more consolidation with a lower boas Looking Ahead to Wednesday All times EASTERN (-5 GMT) • 8:30am USD Core Retail Sales m/m • 8:30am USD Retail Sales m/m • 8:30am USD Import Price Index m/m • 10:00am USD Business Inventories m/m • 10:35am USD Crude Oil Inventories Summary The USD ends today mixed after running stops in both directions today; whippy conditions and thinner volumes helped the Greenback to see some volatility today. Initially better on the day and into European closes the USD reversed today against Yen and EURO but held firm against GBP and Swissy. Although the sentiment is for further USD gains most forex traders are reporting the recent rally may have run its course for now and with more potentially negative USD news due the next few days some traders are seeing profit taking on the sell side today. Rumors of Russian bids and Swiss bids in EURO helped to underpin that rate with the pair making highs in early New York after the release of better Balance of trade data today. Rallying to a high print at 1.4966 the rate was able to hold gains through the day despite some selling pressure spillover from GBP. Cable was unable to hold gains at all today slipping to the 1.8980 area into the close after holding above the 1.9000 handle most of the day; traders note cross-spreading was likely contributing to the weakness in GBP. USD/JPY finally saw the offers take control of the market as stops were triggered under the 109.50 area for low prints late in the day at 109.28; earlier rallies above the 110.00 handle were turned back after several attempts to make highs and now the rate appears to have topped. USD/CHF is in a similar situation but has managed to hold a bit firmer but still off the highs at 1.0928; looks like a close at 1.0860 area is in the works. On the day the USD is looking weaker and I expect a bit more downside with volatility to result; there are a lot of people with the buy the dip mentality waiting for a technical pullback; in my view the USD is setting up for sharply lower prices near term. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Weekly Resistance 3: 1.9220 Resistance 2: 1.9180 Resistance 1: 1.9150 Latest New York: 1.8966 Support 1: 1.8960 Support 2: 1.8920 Support 3: 1.8900 Comments Rate falls back in sympathy with EURO; makes lows late in the day while other pairs hold firm suggesting cross-spreading and whipsaw. Rate is under pressure from stops under 1.9000 initially despite higher CPI. Volumes lighter into the lows. Technical buying seen from some desks, buying seen from semi-official names last week and likely more this week. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Wednesday: All times EASTERN (-5 GMT) 4:30am GBP Claimant Count Change 4:30am GBP Average Earnings Index y/y 4:30am GBP Unemployment Rate 5:30am GBP BOE Inflation Report forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Weekly Resistance 3: 1.5000/10 Resistance 2: 1.4980 Resistance 1: 1.4930 Latest New York: 1.4922 Support 1: 1.4800/10 Support 2: 1.4760 Support 3: 1.4720/30 Comments Net higher day argues for possible short-squeeze. Rate making lows in early trade but then bounces hard, technical selling evident from model accounts traders say suggesting that the rate has finally bottomed. Gap lower has been filled making for a technical buy signal from the lows. Market is heavily short now so expect a rally. Larger names buying traders say. Likely the rate has flushed all longs. Macro accounts seen selling on the break Friday. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw. Data due Wednesday: All times EASTERN (-5 GMT) 5:00am EUR Industrial Production m/m Join us for the Afternoon US Dollar Wrap-Up daily at 3:15 pm Central/Chicago time (GMT -6) Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read our daily Forex Trading Analysis Today’s US Dollar Trading • USD finds stops and advances • USD Sellers attempting to take control • Volumes lighter on the advance Overnight Preview • Advance likely to suffer profit taking • Longs due to liquidate Looking Ahead to Tuesday All times EASTERN (-5 GMT) • 8:30am USD Trade Balance • 10:00am USD IBD/TIPP Economic Optimism Big day for the GBP and the Yen for data. Summary The USD continued its march higher against the forex trading major pairs today after putting in a fragile bottom overnight. Despite the lack of volume and the key support numbers trading in Asia USD traders continued to find offers outweighing bids for the New York session. Leading the drop lower was EURO dragging GBP behind it; low volume breaks into the overnight low at 1.4908 were bought by large names traders say but that was not enough to prevent a break into stops under the 1.4900 handle for a low print at 1.4880. Cable was forced lower as well finding stops at the 1.9100 handle and 1.9080 area for a low print at 1.9066; Forex traders note that stops were the main driver into the lows in GBP and EURO suggesting that buyers have been active on the dips but offers still are larger near-term. USD/JPY stalled at the 110.40/50 area and was unable to extend overnight gains as the rate continued to lag the other pairs. Cross-spreaders for EURO and GBP continued to underpin the majors against the Yen and traders expect more from the Yen on the downside near-term but admit that order books are getting thin on the decline. USD/CHF also stalled for a high print at 1.0882 overnight and held firm all day near the highs but still was unable to extend gains. In view of the Majors dropping to technical support twice in the past 48 hours the USD appears to be overbought across most studies. A reversal is due and depending on the strength of that reversal it is possible that the USD is trying to develop a new uptrend. In my view, the correction in the long-term USD downtrend is still valid but the correction is due to end and the downtrend is due to resume. Look for US data tomorrow to be USD neutral to weaker. Volumes have been lighter on this rally than last week and large names are buying the dips; it appears the USD rally is about done despite excessive extension of the ranges. GBP/USD Daily Resistance 3: 1.9300/10 Resistance 2: 1.9280 Resistance 1: 1.9250/60 Latest New York: 1.9093 Support 1: 1.9050/60 Support 2: 1.9020 Support 3: 1.9000 Comments Rate falls back in sympathy with EURO; rate is under pressure from stops. Volumes lighter into the lows. Stops and technical buying seen from some desks, buying seen from semi-official names on Friday and possibly the early higher action today signals a bottom is in. Stopped out of another long but keep looking at the long side. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Tuesday: All times EASTERN (-5 GMT) 4:30am GBP CPI y/y 4:30am GBP Core CPI y/y 4:30am GBP DCLG HPI y/y 4:30am GBP RPI y/y EUR/USD Daily Resistance 3: 1.5220 Resistance 2: 1.5150/60 Resistance 1: 1.5080 Latest New York: 1.4900 Support 1: 1.4880 Support 2: 1.4850 Support 3: 1.4800/10 Comments Rate making lows in early trade but then bounces hard, technical selling evident from model accounts traders say suggesting that the rate has finally bottomed. Gap lower has been filled making for a technical buy signal from the lows. Market is heavily short now so expect a rally. Larger names buying traders say. Likely the rate has flushed all longs. Macro accounts seen selling on the break Friday. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw. Data due Tuesday: All times EASTERN (-5 GMT) 2:45am EUR French CPI m/m Forex Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • USD gaps higher then fades • Model accounts on the offer for EURO • Volumes modest Today’s Economic Reports All times EASTERN (-5 GMT) • Nothing due Monday but big week coming. Looking Ahead All times EASTERN (-5 GMT) • 8:30am USD Trade Balance • 10:00am USD IBD/TIPP Economic Optimism Big day for the GBP and the Yen for data. Summary Follow-on selling of the majors opened the week for the USD as the Greenback had an early boost to start Asia. Forex traders note that volumes were modest and model accounts were selling EURO/JPY at the open. Most of the pairs had a slight gap lower to start but once the initial USD buying was done the majors started a steady climb into European trade and eventually passed their opening ranges to make highs on the day ahead of New York. Led by EURO the USD has dropped back giving up gains across the board as traders react to over-bought conditions and light economic news. EURO saw model accounts on the sell side pushing the EURO-pairs into lows in Asia; low prints for the EURO/USD at 1.4908 on lower volumes. Bids quickly showed up and rallied the rate more than a full handle for high prints in late Europe at 1.5085 before dropping back to start New York about unchanged around 1.5025 area. The rally in EURO has pulled GBP higher also for high prints at 1.9258 finding close-in stops above the 1.9180 area traders say. Despite weaker UK data out this morning the GBP continues to remain firm and opens the NY session around the 1.9215 area. USD/JPY is off the highs at 110.41 reversing in European trade for lows at 109.60 suggesting the rate is topping. Most technical studies suggest both USD/JPY and USD/CHF are in overbought territory and today’s start to the week are likely going to add fuel to the argument. Both rates had highs in early Asia before reversing. Aggressive traders can look to sell USD today or tomorrow as the rally from last week is probably done now. Weekly studies still point to a retracement and not a change in trend while the lower timeframes are pointing to an overbought condition. Look for the USD to fall back to start the week and once US data is out tomorrow to see a bit more selling. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 1.9300/10 Resistance 2: 1.9280 Resistance 1: 1.9250/60 Latest New York: 1.9210 Support 1: 1.9100/10 Support 2: 1.9080 Support 3: 1.9050 Comments Rate rallies back in sympathy with EURO, poor UK PPI numbers worse than expected but rate remains firm. Stops and technical buying seen from some desks, buying seen from semi-official names on Friday and possibly the higher action today signals a bottom is in. Rate on significant support near the 1.9150 area early today. Rate has likely flushed out every long now and shorts will likely take gains soon leaving the rate vulnerable to a sharp rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Tuesday: All times EASTERN (-5 GMT) 4:30am GBP CPI y/y 4:30am GBP Core CPI y/y 4:30am GBP DCLG HPI y/y 4:30am GBP RPI y/y forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5220 Resistance 2: 1.5150/60 Resistance 1: 1.5100 Latest New York: 1.5013 Support 1: 1.4980 Support 2: 1.4940/50 Support 3: 1.4900/10 Comments Rate making lows in early trade but then bounces hard, technical selling evident from model accounts traders say suggesting that the rate has finally bottomed. Gap lower has been filled making for a technical buy signal from the lows. Market is heavily short now so expect a rally. Larger names buying traders say. Likely the rate has flushed all longs. Macro accounts seen selling on the break Friday. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw. Data due Tuesday: All times EASTERN (-5 GMT) 2:45am EUR French CPI m/m Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading • USD finds stops above yesterday’s highs • Holds gains into the close • Volumes on the lighter side Overnight Preview • Look for the USD to retrace a bit • Quiet ahead of the rate announcements Looking Ahead All times EASTERN (-5 GMT) • 8:30am USD Unemployment Claims • 10:00am USD Pending Home Sales m/m • 10:35am USD Natural Gas Storage • 3:00pm USD Consumer Credit m/m Rate announcements due from overseas also, could be a big day for the USD. Summary On a day with no economic news the USD has advanced and held gains after starting weaker in Asia overnight. Forex traders note that volumes were low-to modest and the expected volatility from breaching areas of known large stops was minimal. After scoring a new high at 108.60 in early New York the USD/JPY continued to advance as light stops were triggered absorbing offers layered to the 109.10 area. Once over the 109.10 area the market became quiet but ground higher as US equities remained firm and oil continued under pressure. Analysts are skeptical that the USD can continue to advance without solid economic news as the underlying fundamentals are still negative for the Greenback but traders say they are seeing solid bids on a regular basis today. Technical factors in Yen suggest the rate will challenge the 2008 highs around the 110.80 area but in my view that is a tough call without some help from the fundamental front. I personally think the advance is due to correct and the USD will give back these gains but so far today the USD remains firm. GBP has fallen to a low print at 1.9465 and attracted good bids but has not been able to recover as of yet despite the EURO putting on some weight after the break in that pair stalled at 1.5397. Both pairs have fallen hard the past three days and a rotation higher is due soon especially ahead of the ECB and BOE rate announcements out tomorrow; a round of profit taking by the shorts would be a reasonable expectation for tomorrow. USD/CAD has also rallied to a high print at 1.0491 before dropping back to the 1.0450 area suggesting the top is near in that pair as well; traders report model and macro accounts buying USD against offers from semi-official and sovereign names. On the day, the USD’s advance might not be as solid as some expect. Volumes have been on the lighter side and traders have reported “smarter” names and real money on the offer into the highs. Look for the USD to give back some of these gains the next 24 hours; tomorrow’s rate announcements might be the catalyst for a retracement. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 1.9620 Resistance 2: 1.9600 Resistance 1: 1.9550 Latest New York: 1.9470 Support 1: 1.9450/60 Support 2: 1.9410/20 Support 3: 1.9380 Comments Rate goes two-way overnight, follows EURO lower. Good buying seen from large names at 1.9550 area the past 24 hours. Fails to hold early gains on lighter volumes. Rate has likely flushed out weak early longs and shorts will likely take gains soon leaving the rate vulnerable to a rally. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Thursday: All times EASTERN (-5 GMT) Tentative GBP Halifax HPI m/m Tentative GBP MPC Rate Statement 7:00am GBP Official Bank Rate forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5680 Resistance 2: 1.5620 Resistance 1: 1.5580 Latest New York: 1.5408 Support 1: 1.5400 Support 2: 1.5380 Support 3: 1.5350 Comments Rate dips further into support at 1.5400; volumes only moderate with larger names buying traders say. Likely the rate has flushed early longs. Macro accounts seen selling on the break suggesting the rate will find a bottom soon around current levels. Rate feels like it wants to rally off these lows. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. Data due Thursday: All times EASTERN (-5 GMT) 2:00am EUR German Trade Balance 2:45am EUR French Trade Balance 4:00am EUR Italian Industrial Production m/m 6:00am EUR German Industrial Production m/m 7:45am EUR Minimum Bid Rate 8:30am EUR ECB Press Conference Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Forex Daily Analysis Today’s US Dollar Trading • USD rallies to highs • FOMC is seen as disappointing • No major reaction to the news Overnight Preview • USD to fall back on book squaring • Volumes to remain light Looking Ahead All times EASTERN (-5 GMT) • 10:35am USD Crude Oil Inventories Another light day for data across the board. Forex Trading Summary After a stop-driven rally overnight that drove the USD higher to start today’s trading the USD has consolidated gains in less-than-active trade to finish the day. This morning’s ISM services data was a bit better than expected and the USD remained firm after seeing early signs of running out of upside momentum. Traders report large names on the bid for GBP and EURO on today’s dips and they were rumored to be in on the buy side after today’s main news. As expected, the US Fed’s FOMC voted to hold rates steady at 2.0% again this month and released an “as expected” statement that basically caused a small wiggle in the USD for a moment or two. Although USD/JPY rallied on the news making a new high at 108.42 the rumored large stops must be a bit farther away as the rate fell back shortly thereafter to trade the low 108.00 handle; traders report that the offers that have turned the rate back the past several sessions remain in size and the bulls are likely getting tired of waiting as they have just seen their best effort to-date rejected so far. USD/CHF also saw a rally but did not make a new high on the day and remained in the same range as it was before the report. Forex trader’s note that volumes in all pairs were only on the lighter side and that may be the reversal signal for the Swissy as a low volume rally for the second time this week failed to find large stops above the market. GBP found a new low post-London fix but has whipsawed sellers on the news; aggressive traders can buy Cable anytime now as the sell-off looks to be reaching at this point. Semi-official names reported on the bid during the day as well. Helping to hold the GBP higher was EURO as both rates continued to track each other. Cross-spreading overnight was not significant enough to push the EURO past the recent overnight low suggesting that the rate is about ready to rotate higher; aggressive traders can look to buy the rate under the 1.5500 handle. In my view, the USD has exhausted its upward momentum at this point. FOMC was more than enough to attempt another leg higher by the USD and the failure to extend gains suggests the USD has made the highs for the week. Look for the USD to leg lower the next 24 hours. GBP/USD Daily Resistance 3: 1.9700 Resistance 2: 1.9680 Resistance 1: 1.9630 Latest New York: 1.9565 Support 1: 1.9520 Support 2: 1.9480 Support 3: 1.9450 Comments Rate follows EURO lower and hits large stops; good buying seen from large names at 1.9550 area. Fails to hold early gains on very light volumes. Rate has likely flushed out weak early longs and shorts will likely take gains soon leaving the rate vulnerable to a rally. Close to the buy zone in my view. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Wednesday: All times EASTERN (-5 GMT) 5:30am GBP BRC Shop Price Index y/y EUR/USD Daily Resistance 3: 1.5680 Resistance 2: 1.5620 Resistance 1: 1.5580 Latest New York: 1.5462 Support 1: 1.5450 Support 2: 1.5400/10 Support 3: 1.5380 Comments Rate falls into next support level on stops and active sales; reserve manager and official names seen on the dip into the 1.5490 area traders say. Likely the rate has flushed early longs. Macro accounts seen selling on the break suggesting the rate will find a bottom soon around current levels. Rate feels like it wants to rally off these lows. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. Data due Wednesday: All times EASTERN (-5 GMT) 6:00am EUR German Factory Orders m/m Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex brokers and our Forex analysis section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading • USD starts mixed then rallies • USD/CAD rallies to a new high • Volumes moderate Overnight Preview • Likely early follow-on buying of USD • Should be quiet ahead of FOMC Looking Ahead to Thursday All times EASTERN (-5 GMT) • 10:00am USD ISM Non-Manufacturing Composite • 2:15pm USD FOMC Statement • 2:15pm USD Federal Funds Rate Summary The USD is higher against most pairs today after a mixed start overnight. A dropping oil market helped the Greenback and the early rally extended after the London fix for USD/CAD and USD/JPY. Both pairs made highs into the end of the trading day surprising most desks with the firmness on the move. The rumored option barrier at 1.0310 area in Loonie fell as stops above got triggered for a high print at 1.0371 as the rate ground through reported offers around the 1.0340/0 area. The rate is now sitting at the highest level it’s been at all year and possibly set to take on a new high. Traders report more offers layered ahead of the 1.0380 through 1.0400 areas so action could get choppy. Stops out of range on the day but just barely; aggressive traders can hold open shorts. USD/JPY also rallied today clearing light stops at the 108.10/20 area for a high print late in the day at 108.30; still technically an inside range day. Forex traders note offers are remaining thick and exporters are on the offer actively. Additionally, volumes were light on the move suggesting the rate may have had some extra chop due to thin conditions. EURO had a nice rally touching the 1.5620 area before being pushed back; high prints at 1.5632 as oil rallied this morning but once oil fell back the Greenback flew higher taking out light in-range stops set by early longs. Across the board the USD firmed after the London fix, GBP had the lows on the day late in sympathy with EURO most agree; GBP now under the July lows suggesting more weakness on the way. In typical technical fashion the GBP had a lot of interest in cross-rates today with Sterling-Yen and EURO/GBP both having a two-way day. For the most part, today’s USD trading was technical in nature as the USD found close-in stops to help drive action today. On a pre-report day such as tonight/tomorrow more technical trading is expected. Look for the Greenback to remain range bound and sideways; it should get real quiet as the markets brace for FOMC on Tuesday. Market sentiment is for no rate change and no change to the statement. I look for the majors to consolidate for the most part. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 1.9850 Resistance 2: 1.9820/30 Resistance 1: 1.9780 Latest New York: 1.9623 Support 1: 1.9600 Support 2: 1.9550/60 Support 3: 1.9520 Comments Rate follows EURO higher then lower, finds stops on post-news drop; good bids seen on the dip into 1.9600. Fails to hold early gains on very light volumes. Nothing really happening; some cross trading likely but not a lot of chatter about sterling crosses overnight. Traders report some reserve-manager buying on the dips but also offers capping. Rate is two-way in sympathy with EURO. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Tuesday: All times EASTERN (-5 GMT) Tentative GBP Halifax HPI m/m 4:30am GBP Manufacturing Production m/m 4:30am GBP Services PMI 4:30am GBP Industrial Production m/m 7:01pm GBP Nationwide Consumer Confidence 7:01pm GBP NIESR GDP Estimate forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5750 Resistance 2: 1.5700/10 Resistance 1: 1.5620/30 Latest New York: 1.5586 Support 1: 1.5540/50 Support 2: 1.5520/30 Support 3: 1.5500 Comments Rate two-way all day but holds support, rate remains in tight range but toolbox gives a buy signal. Low prints again at MAJOR support. Hard and fast break from US data last week meets with no follow-on selling; likely to encourage a round of short covering next day or two. Look to re-short later; rate feels like it wants to rally off these lows. Aggressive traders can buy this dip for a return to resistance. Continued trade under the 1.5700 area pressures buying signals; “dead cat bounce” is likely today but if volume are there, need to hold a bit. Rate continues to track Cable and vice-versa. Stops above the 1.5820 area likely back out of range for today after the drop last week. Now that stops are cleared a rotation higher is coming. Data due Tuesday: All times EASTERN (-5 GMT) 4:00am EUR Services PMI ® 5:00am EUR Retail Sales m/m Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Forex Trading Daily Analysis Overnight Asia/Europe • USD mixed in early trade • Volumes lighter, technical trade mostly • Traders watching Interest Rate announcements Today’s Economic Reports All times EASTERN (-5 GMT) • 12:00pm USD FOMC Member Mishkin Speaks • 2:30pm USD Treasury Sec Paulson Speaks Slow start to the week likely, possible technical trading. Looking Ahead to Tuesday All times EASTERN (-5 GMT) • 10:00am USD ISM Non-Manufacturing Composite • 2:15pm USD FOMC Statement • 2:15pm USD Federal Funds Rate Summary The USD is mixed to start the week, higher against GBP, CAD; flat to lower against EURO, Yen and Swissy. The market is trading very technically traders say with early stops positioned just outside of recent weekly ranges as expected. Economic news is light to start the week with most traders choosing to focus on the rounds of interest rate decisions coming from several central banks. Foremost on the minds of traders is the US Fed FOMC meeting tomorrow; no interest rate change is expected but traders believe a rate hike is coming near the first of the year. Tomorrow’s statement will be closely watched as well for clues moving forward; most traders expect no hint of a change in rates until possibly Oct/Nov. Although the USD is mixed to start, the GBP is lower for a new weekly low at 1.9666 and is near the monthly low for July making for a near-term double bottom on the charts. Technical traders appear to be in control of the market this morning and more news of option barriers under the market is likely around the 1.9650 area. EURO is flat to slightly higher staying inside Friday’s ranges with a low print at 1.5562 overnight Asia; rate is holding near the 1.5600 handle to start New York. CFTC data released Friday suggests a potential bottom is in and the toolbox has placed an exponential reversal at today’s action. Aggressive traders can buy EURO/USD anytime today and look for a solid bounce to test resistance at last week’s highs around 1.5750/60 area. USD/JPY is flat to higher; high prints around the previous 108.00 area are keeping the lid on; Forex traders report exporters on the offer above the 108.00 area as expected. USD/CHF is flat to lower holding highs under the 1.0500 handle at 1.0499. If the USD should rally this week expect the 1.0520/30 area to hold as resistance making a weekly double-top; if the highs are in for the week already then the USD could make a large move against the Swissy to end the week as technical traders have defended the 1.0500 handle very aggressively the past few months. USD/CAD has traded to the 1.0310 high print of rumored option barrier; not much upside seen in the rate but whipsaw might be on the table should the USD rally a bit elsewhere. Look for the USD/CAD to fall back from here soon. On the day, expect lighter volumes and current conditions to hold the majors where they are. We need to see the FOMC results as well as other banks before the USD makes a move I think. GBP/USD Daily Resistance 3: 1.9850 Resistance 2: 1.9820/30 Resistance 1: 1.9780 Latest New York: 1.9672 Support 1: 1.9650/60 Support 2: 1.9620/30 Support 3: 1.9600 Comments Rate drops further on follow-on selling; fails to hold early gains on very light volumes. Nothing really happening; some cross trading likely but not a lot of chatter about sterling crosses overnight. Traders report some reserve-manager buying on the dips but also offers capping. Rate is two-way in sympathy with EURO. Possible buying from semi-official names so watch the news. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Tuesday: All times EASTERN (-5 GMT) Tentative GBP Halifax HPI m/m 4:30am GBP Manufacturing Production m/m 4:30am GBP Services PMI 4:30am GBP Industrial Production m/m 7:01pm GBP Nationwide Consumer Confidence 7:01pm GBP NIESR GDP Estimate EUR/USD Daily Resistance 3: 1.5750 Resistance 2: 1.5700/10 Resistance 1: 1.5620 Latest New York: 1.5575 Support 1: 1.5540/50 Support 2: 1.5520/30 Support 3: 1.5500 Comments Rate remains in tight range but toolbox gives a buy signal. Low prints again at MAJOR support. Hard and fast break from US data last week meets with no follow-on selling; likely to encourage a round of short covering next day or two. Look to re-short later; rate feels like it wants to rally off these lows. Aggressive traders can buy this dip for a return to resistance. Continued trade under the 1.5700 area pressures buying signals; “dead cat bounce” is likely today but if volume are there, need to hold a bit. Rate continues to track Cable and vice-versa. Stops above the 1.5820 area likely back out of range for today after the drop this week. Now that stops are cleared a rotation higher is coming. Data due Tuesday: All times EASTERN (-5 GMT) 4:00am EUR Services PMI ® 5:00am EUR Retail Sales m/m Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check our Forex analysis section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • USD mixed to open New York • Overnight action subdued • Traders waiting on US data this morning Today’s Economic Reports All times EASTERN (-5 GMT) • 8:30am USD Nonfarm Employment Change • 8:30am USD Unemployment Rate • 10:00am USD ISM Manufacturing Index • 10:00am USD Construction Spending m/m • 10:00am USD ISM Manufacturing Prices • All Day USD Domestic Vehicle Sales Looking Ahead to Monday All times EASTERN (-5 GMT) • 12:00pm USD FOMC Member Mishkin Speaks • 2:30pm USD Treasury Sec Paulson Speaks Slow start to the week, possible technical trading. Summary The USD is quiet this morning as traders await big economic news due out shortly; most traders are preparing for a weaker-than-expected NFP number but with a caution towards the possibility that ADP earlier this week was more accurate this time. A larger number showing growth in the jobs market would likely fuel an advance in equities and therefore USD; and with the Greenback hovering flat-to-firmer overnight it wouldn’t take much for the USD to rally into new territory to start the month. Overnight the USD advanced slightly against the GBP and the EURO but retreated mildly against the Yen and Swissy. Loonie is softer putting the USD/CAD at the high end of the recent weekly range suggesting the rate is set to score one more advance before a retreat from the top of the established range. For the most part the USD has been quiet with more of a drifting sort of price action rather than outright buying. Forex traders note that quiet conditions leading to technical trade have pushed the majors to the next level of S/R seen previously in the week but no interest yet to go farther as expected bids/offers are expected to contain the rates. USD/JPY saw a pullback to the 107.30 low print but was bought by short-term accounts traders say; rate is currently back to the mid-range area around the 107.70/80 area with offers said to be ready to cap further gains at the 108.20/30 area. Option defense is said to be seen in all pairs as well keeping the USD range bound as well. Once today’s data is out those barriers will either hold or fall and traders are expecting volatility around the news; although that is normal I don’t see a large move by the USD today. I expect recent resistance to hold to the upside and a rotation lower as longs take profits for the week. Dips in EURO and GBP are likely to hold as the studies are showing some “oversold” readings and typically when that happens on a Friday you have a reversal as winners book gains. In my view, the EURO holding support at the 1.5550 area overnight is a good signal a rotation higher is likely; as is cable holding the 1.9730/40 area. Stops are likely placed under the lows from early longs and if the jobs data is enough to inspire a USD rally then those levels may fall but I really think the market is poised to advance against the Greenback. Aggressive traders can look to take advantage of volatility and attempt to get short the USD on strength into existing resistance. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading • USD extends range a bit • Two-way action portends more correction • Volumes moderate Overnight Preview • Look for a very quiet session overnight • Waiting on US GDP tomorrow Looking Ahead All times EASTERN (-5 GMT) • 8:30am USD Advance GDP q/q • 8:30am USD Advance GDP Price Index q/q • 8:30am USD Employment Cost Index q/q • 8:30am USD Unemployment Claims • 9:45am USD Chicago Business Barometer • 10:35am USD Natural Gas Storage • 1:00pm USD Treasury Sec Paulson Speaks Summary An uneventful day for the USD today despite the release of ADP private payroll data which came in higher-than-expected. Forecasting good news on the employment front traders took this morning’s data as a positive for the USD and lifted the Greenback to the best levels of the week so far extending gains seen yesterday. The advance was short-lived as the majors reversed off the lows and returned to the upper end of their past 24 hour ranges; Cable holding firmly to gains over the 1.9800 handle after a low print at 1.9743. Forex traders report good buying from semi-official names helping to support into the end of New York. EURO dipping down into new lows supported by Fib defense in the low 1.5500 handle; low prints at 1.5521 before bouncing into the 1.5580 area; traders suspect the worst may be over for the EURO after holding the 1.5500 handle but volumes were light on the bounce. In my view the USD has simply extended the range near-term on late bids and will likely fall back to challenge the lows intraday again which I think will offer a buying opportunity. Technically the USD has not violated any significant S/R so far this week and more upside is possible after a corrective dip to wash out the late longs. USD/JPY and USD/CHF all traded into respective resistance making new monthly highs the past 24 hours. USD/CHF tagged the 1.0500 handle and now looks set to drop off. Aggressive traders should be short from above the 1.0500 handle today. Yen has significant offers above the market at the 108.30/50 area and it will take a lot of effort to break the rate over the 108.50 zone. If that happens traders report a huge interest to buy the breakout and run with it as it appears that will be a significant psychological change for the rate. In my view, the USD will retreat from current pricing and sketch out a broader trading range. I don’t think the USD has the structural fundamentals for a sustained rally against the rest of the world’s currencies; although a wide trading range is likely. Look for a quiet overnight session ahead of tomorrow’s GDP data early. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 1.9920 Resistance 2: 1.9880 Resistance 1: 1.9850/60 Latest New York: 1.9805 Support 1: 1.9750/60 Support 2: 1.9720 Support 3: 1.9680 Comments Past 12 hours has been consolidation. Nothing really happening but a light volume rally. Rate is two-way in sympathy with EURO. Look for lower action today with bid interest from semi-official names. Offers above the market mixed with stops from late shorts so be ready for whipsaw the next few days. Traders expect GBP to track EURO through this week. Continue to expect a lot of cross-trading. Data due Thursday: All times EASTERN (-5 GMT) 2:00am GBP Nationwide HPI m/m forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5700/10 Resistance 2: 1.5680 Resistance 1: 1.5620/30 Latest New York: 1.5567 Support 1: 1.5520/30 Support 2: 1.5500 Support 3: 1.5480 Comments Low prints at MAJOR support; hard and fast break likely to encourage a round of short covering next day or two. Look to re-short later—OK to stay flat a bit as we just took a huge win from the short side. Continued trade under the 1.5700 area pressures buying signals; another low likely before a “dead cat bounce”. Rate continues to track Cable and vice-versa. Stops above the 1.5820 area likely back out of range for today after the drop this week. Now that stops are cleared a rotation higher is coming. Data due Thursday: All times EASTERN (-5 GMT) 3:55am EUR German Unemployment Change 5:00am EUR CPI Flash Estimate y/y 5:00am EUR Italian Prelim CPI m/m 5:00am EUR Unemployment Rate Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Daily Forex Trading Analysis Today’s US Dollar Trading • USD rallies hard after US news • Stops drive a lot of trade • Volumes larger Overnight Preview • Order boards wiped clean so expect consolidation • Whipsaw likely around US data in the morning Looking Ahead to Wednesday All times EASTERN (-5 GMT) • 8:15am USD ADP Nonfarm Employment Change • 10:35am USD Crude Oil Inventories ADP likely to be the big news for the day. Summary After a quiet and slow start overnight the USD rallied hard after the release of better-than-expected Consumer Confidence data to post the best levels of the month against most pairs. Although not a closely watched indicator, today’s Consumer data was enough to rally US equities which started the general climb by the USD until stops above the market were elected in size as had been rumored. Perhaps making for a self-fulfilling prophecy, the majors fell back through waves of stops were hit as traders bailed on long positions once news lows for the week were traded. Across the board the USD rallied and held firm after the London fix and into the close with strong volumes available to mark the USD higher. GBP fell through the 1.9840/50 area early in the day and pressured offers resting around the 1.9800 area until the stops were triggered taking the rate to a low print at 1.9759 in the afternoon. Not able to recover as of this writing the rate remains near the lows at 1.9778 area. EURO fell in sympathy as well finding stops at 1.5700, 1.5660, and what appears to be long-liquidation stops at 1.5600 for a low print at key support at 1.5550 area; low print at 1.5552 before bouncing. Post liquidation rallies in all pairs were dismal and the USD appears to have potential to consolidate these gains overnight. USD/JPY rallied past the 108.00 handle for a high print at 108.31 before offers capped the move; Forex traders say exporter offers and long-liquidation selling plus long-term players and semi-official selling made for a hard top; traders expect the USD/JPY to fall back despite the firmness seen elsewhere. Both Swissy and Loonie are topping as well I think and the next 24-48 hours of hard US data likely to increase volatility a bit. Look for the USD to consolidate these gains and perhaps have a bit of two-way trade or early profit taking but if US data is dollar-friendly then the USD may have another leg higher in store near-term. Aggressive traders need to be ready to sell into this rally as the move is at key resistance across the board. The next day or so we will have short trades. forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5840/50 Resistance 2: 1.5800 Resistance 1: 1.5750/60 Latest New York: 1.5582 Support 1: 1.5550 Support 2: 1.5520/30/30 Support 3: 1.5500 Comments Low prints at MAJOR support; hard and fast break likely to encourage a round of short covering. Look to re-short later—OK to stay flat a bit as we just took a huge win from the short side. Close back under the 1.5700 area pressures buying signals; not a lot of bids due soon. Rate continues to track Cable and vice-versa. Stops above the 1.5820 area likely back out of range for today after the drop this morning. Stops under the 1.5620/30 area were as expected; now that they are cleared a rotation higher is coming. Data due Wednesday: All times EASTERN (-5 GMT) 5:00am EUR Consumer Confidence USD/JPY Daily Resistance 3: 109.00/10 Resistance 2: 108.80 Resistance 1: 108.40/50 Latest New York: 108.13 Support 1: 107.20/30 Support 2: 106.80 Support 3: 106.50 Comments Rate finds stops to drive higher but offers are massive traders say. Out of longs with nice gain; ok to reverse and short the rate but I am inclined to wait a day or so. Volumes were higher and suggest a lot of bids trying to score higher action but offers contain them. Equities continue to drag on the pair but close above 108.00 likely to inspire more two-way action. More stops beyond above 108.50 in large size traders say. Rate likely to attempt more gains if oil drops and equities rally. Exponential reversal signal still valid, expect more two-way action and a test of the highs. Data due Wednesday: All times EASTERN (-5 GMT) 7:15pm JPY Manufacturing PMI Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex analysis section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Today’s US Dollar Trading • Unusually quiet, little volume • Ranges hold for the most part • No real push either way with any conviction Overnight Preview • Look for more quiet action • Two-way and technical action to continue Looking Ahead to Tuesday All times EASTERN (-5 GMT) • 9:00am USD S&P/CS HPI Composite-20 y/y • 10:00am USD Consumer Confidence Index Forex Trading Summary Despite a mixed opening and solid two-way trade, none of the majors were able to extend gains against the USD today in super-light trading. Cable scored a modest new high from overnight action, as did Yen, but all the major pairs continue inside previous support or resistance with modest interest on both sides remaining after the first day of trading for the week. GBP held gains made in New York reversing off the lows seen in late Europe but still not attracting large size. Most of the action was considered drifting trade with little impetus behind it suggesting the GBP was drifting higher from lack of selling rather than outright buying. Forex trader’s note that “absolutely nothing” was going on after the London fix. EURO remained stuck inside a very tight 30 point range after the fix which saw some EURO selling but not enough to break the rate back convincingly under the 1.5700 handle. Traders complained of very light volume again as was the case in all the pairs. USD/JPY fell to a new daily low at the 107.33 figure but saw some solid bids emerge to lift the rate off the lows; high prints overnight at a new monthly high of 108.08 remained unchallenged in NY trade and traders expect another test to draw out the offers again tonight. For the most part the USD was the victim/beneficiary of non-USD cross spreading which again saw demand for Yen at the highs. Exporters on the offer will likely be seen tonight. About the only USD pair with any upside follow-through from last week today was USD/CAD. Traders note that high prints at 1.0247 included light stops and possible official buying suggesting the rate will try for the 1.0250/80 area before reversing. In my view, the Loonie is at the top of the range and a drop is coming so aggressive traders can sell USD/CAD anytime over the 1.0250 area near-term. I’ll make it an official set-up in the next 24 hours but I like the sell side over the 1.0250 area. In my view, the USD has had a dismal day of non-event trading. Today’s highs/lows cannot be relied on to offer significant data for the coming few days as the volume were so low and the interest non-existent. Traders appear to be waiting for more news later in the week. Expect a quiet overnight session also. forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5840/50 Resistance 2: 1.5800 Resistance 1: 1.5750/60 Latest New York: 1.5749 Support 1: 1.5670/80 Support 2: 1.5620/30 Support 3: 1.5580 (MAJOR SUPP) Comments Early break bought back but whipsaw is on no volume and rate is stuck. Some semi-official selling possible. Stops and short-squeeze by Russian buying this morning; resistance at 1.5750 area holding. SWF’s were selling EURO on the rally last week; need to see them back this week. Close back under the 1.5700 area needed to pressure buying signals or at least postpone them a few days. Lots of two-way action under the 1.5700 handle. Rate continues to track Cable and vice-versa. Stops above the 1.5820 area possibly in range today; stops under the 1.5620/30 area likely in size and enough to test 1.5580 major support. Hold shorts and let it work. Large names on the offer reported into the highs, look for a top to form. Major support at the 1.5580 area and slightly below. The 50 bar MA likely to offer support should the rate fall back but still looking for a test under the 1.5600 area soon. Data due Tuesday: All times EASTERN (-5 GMT) All Day EUR German Prelim CPI m/m USD/JPY Daily Resistance 3: 108.80 Resistance 2: 108.40/50 Resistance 1: 108.00/10 Latest New York: 107.48 Support 1: 107.20/30 Support 2: 106.80 Support 3: 106.50 Comments Early dip bought back, rate holds ranges despite an early attempt through the 108.00/10 resistance area. Volumes not that high suggesting more two-way action and bids will support. Rate grinding into offers and a rally may come overnight Monday. Equities continue to drag on the pair but support appears sold on the dip to 106.50 area. Rate is ready to test the size of offers at the 108.00 area and beyond in my view. More stops beyond above 108.50 in large size traders say. Rate likely to attempt more gains if oil drops and equities rally. Exponential reversal signal still valid, expect more two-way action and a test of the highs. Look to cover longs on a rally over the 108.25 area. Data due Tuesday: All times EASTERN (-5 GMT) 7:50pm JPY Prelim Industrial Production m/m. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Check our Forex Analysis Section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • Volumes lighter and ranges tighter • Russians buy EURO, Swiss buy & Sell • Technical action dominates Today’s Economic Reports All times EASTERN (-5 GMT) • 12:00pm USD FOMC Member Mishkin Speaks Very light calendar for everyone on Monday Looking Ahead to Tuesday All times EASTERN (-5 GMT) • 9:00am USD S&P/CS HPI Composite-20 y/y • 10:00am USD Consumer Confidence Index Summary The USD is mixed to start the week in light trade; volumes have been thin and traders report a lot of technical trading. The Greenback managed to score a new one-month high against the Yen in Asian dealings aided by demand for non-USD Yen crosses; sterling-yen rallied and spillover strength was seen in other pairs. High prints in the USD/JPY at 108.08 failed to trigger large stops said to be resting above the 108.00/10 area mixed with hefty offers; traders note that option defense may be playing a role in aggressive selling above the 108.00 handle but also note solid exporter offers in size. A rally past the 108.20 area most likely will expose some degree of stops with the majority rumored to be resting in the 108.50 area and beyond; above the 2008 highs. Forex traders note that dips have shown buyers suggesting that the rate has good interest from both sides at current prices; a breakout to the upside could have a lot of momentum behind it. EURO saw an early dip reverse to make highs in European trade; Russian bids apparently the driver in Asia and early Europe. Swiss private bank bids as well as offers suggest that the EURO has short-term interest and is possibly going to range trade. Traders note that the offers were layered between 1.5720 and 1.5770 all the way through stops at 1.5750 in size; the rate has a high print in early New York at 1.5765 but volumes have been low. Cable is weaker driven by Yen crosses overnight; high prints at 1.9927 and low prints at 1.9838 leaving less than a 100 pip range so far. GBP is under pressure this morning but has an inside-range day to start suggesting price direction is inconclusive. In my view, a low-volume rally in GBP combined with sympathy buying from upward pressure in EURO will result in a retreat by Cable as the day wears on; technical buying/selling usually can’t break a rate out of established ranges but poor economic news can. Due in the UK tomorrow is news that most certainly will be Pound-Bearish. Aggressive traders can hold their GBP shorts through the mid-week area as downward pressure is still due in my view. Look for the USD to remain range-bound today and rotated higher after lows hold today, I don’t think there is enough interest in the downside to attract sellers in size without news due on Wednesday. Look for the USD to consolidate for the most part. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • Japan CPI worse than expected • UK GDP drops but GBP rallies in sympathy w/EURO • Volumes lighter, SWF’s buy USD Today’s Economic Reports All times EASTERN (-5 GMT) • 8:30am USD Core Durable Goods Orders m/m • 8:30am USD Durable Goods Orders m/m • 9:55am USD Revised UoM Consumer Sentiment • 9:55am USD Revised UoM Inflation Expectations • 10:00am USD New Home Sales New Home Sales likely to drive trade. Looking Ahead to Monday All times EASTERN (-5 GMT) • 12:00pm USD FOMC Member Mishkin Speaks Very light calendar for everyone on Monday Summary The Greenback is lower this morning after failing to hold gains earned in New York yesterday; Japan CPI came in much higher than expected and USD/JPY whipsawed in early dealings. Most of the overnight action was dominated by the Yen crosses as demand for Yen pairs rallied the Yen pushing most of the major pairs higher against the USD overnight. Shorts were squeezed as close-in stops were triggered lifting the majors to previous highs against the USD making the overnight session a loss to momentum traders on the sell-side of GBP and EURO. Cable rallied back to the 1.9900 handle and found stops over the 1.9920 area also for high prints in European trade at 1.9980; two-way trade may have been exacerbated by thin volumes but the GBP caught USD bulls wrong-footed unexpectedly. Lots of sell interest reported on the approach to the 1.9900 handle including SWF’s but the offers were not enough to cap the rally at technical resistance and the next level is again in play. Expect a retreat from the highs on US data as well as technical trade the next 24-48 hours. EURO rallied back to the 1.5750 area as stops were triggered over the 1.5700 area; Forex traders report SWF supply at the 1.5715 area but as in GBP offers were not enough to contain the rally. The toolbox is currently offering a cluster of BUY signals to end the week and EURO shorts need to exercise caution at the current levels. Although the bounce to end the week is not unexpected and the larger timeframes are likely shorting EURO, the potential for the rate to whipsaw remains high. US data this morning will provide another clue for near-term direction. Should US data be friendly to the USD today expect a drop in the majors and a late rally in USD. USD/CAD rallied to a high print at 1.0171 overnight and remains the firmest of all the pairs to finish the week; aggressive traders can look to short the rate on any additional strength into the 1.0180/1.0200 areas. In my view the Lonnie remaining firm while every other major pair has suffered two-way volatility this week suggests that the USD is not out of the game yet when it comes to underlying upside potential. The large interest in Yen crosses overnight will likely fade early next week and if US data can help the USD firm up a bit before the close today I would look for this weakness to be a head-fake on the day. Look for resistance to hold for the day. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading • USD regains poise after early break • Oil and equities help the upside • Volumes moderate Overnight Preview • Expect two-way action • USD to consolidate Looking Ahead to Thursday All times EASTERN (-5 GMT) • 8:30am USD Unemployment Claims • 10:00am USD Existing Home Sales • 10:00am USD FOMC Member Geithner Speaks • 10:35am USD Natural Gas Storage Summary After a slide overnight against GBP and EURO the USD rallied back in late US trade to regain some territory after oil continued to slide and equities put on some weight. The Greenback is at better levels against all the majors than the start of US trade and is poised to challenge stops above the market across the board. Today’s US data was benign and more important data is due for tomorrows release and some traders are looking for the USD to make additional highs for the week although today’s rally volumes were not impressive suggesting that the majors are consolidating recent losses before making a more pronounced move the next 24-48 hours. Cable rallied above the 2.0000 handle but as been the custom above the 200 bar MA does not “feel comfortable” holding gains; the GBP fell back to trade the mid-1.9900 area leaving a strong selling wick above the market. Highs at 2.0032 were on very light volumes and largely stop driven before dropping back to make US lows under the 1.9970 area. A close below the 1.9950 area again is needed to drive the longs to the sidelines and that may come on the Tokyo open in my view. EURO fell as oil slid off and making lows for the US session and the day as well; some stops cleared as the rate dipped under the 1.5680 area for a low print ahead of the close at 1.5669; volumes were modest most desks report. USD/JPY struggled with offers at the 108.00 area managing a high print at 107.98 but has not retreated more than a few pips suggesting that a try for stops above the 108.00 area may be on the hook for tonight’s action. Aggressive Forex traders can place a resting limit order to liquidate longs at 108.25 looking for a test of offers at the 108.40 area; if you are really aggressive you might try a close and reverse but with US housing data still to come there is potential for the rate to try for the high 108’s the next 24 hours. Minor whipsaw today paved the way for small accounts to get cleared as they have been on the wrong side of the stops near-term. In my view, look for the USD to consolidate with a bit more upside on the books overnight. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Daily Forex Trading analysis Today’s US Dollar Trading • USD reverses higher after a lower open in New York • Traders note stops and liquidation off the lows • USD/JPY flirts with close above the 200 bar MA Overnight Preview • Look for the USD to consolidate • Two-way action ahead of minor news tomorrow Looking Ahead to Wednesday All times EASTERN (-5 GMT) • 10:35am USD Crude Oil Inventories • 2:00pm USD Beige Book Continuing the slow start for US data this week. Summary After a low-volume sell-off this morning to trade at the worst levels of the day the USD rallied back hard to run stops and squeeze shorts all day into the close. Traders note that volumes increased dramatically once the reversal began to gain momentum and across the board the USD rallied through resistance to close at some critical numbers for the USD bulls. Cable tracked EURO lower as expected but found large stops resting in the 1.9930/40 area and traded to a low print at 1.9894 briefly before holding above the 1.9900 handle but well below the trigger point for the stops. EURO had a similar day eventually finding stops under the previous week’s low at 1.5780 area for a low print at 1.5756 before bouncing; the rate unable to regain the 1.5800 handle into the close making for a potential reversal today. Traders note that with the increase in volume on the rally for the Greenback it is possible that the USD has put in the low for the week; the majors have all completed minor reversal patterns suggesting the same. Although there was a bit of profit taking by the longs this afternoon the USD/JPY held onto solid gains above the 107.00 handle and closes around the 200 bar MA; stops were elected above the 107.20 are and high prints at 107.45 before a drop in volume and a fall back to the 107.10/20 area. Traders note that the rate has closed at the 200 bar MA which has ignited volatility in recent trade and more upside is expected to be sold with some forex traders suggesting offers ready at the 107.80 area. Today’s rally and test of the 107.50 area suggests that the USD has more upside ahead before a fall back making the ranges the Greenback has a bit wider and subject to more whipsaw. In my view, the USD has shown enough strength to look for another add point on the current open trades. I think aggressive traders can look to sell the GBP and the EURO around the closing levels today and look to buy more USD/JPY tomorrow after the Asian session. If oil continues to weaken early in Asia I think the USD/JPY could advance into reported stops above the 107.80 area and possibly challenge the 108.00 handle for the day; an excellent short potential I think. For tonight I look for two-way consolidation with a better bias for the USD. forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.6000 Resistance 2: 1.5980 Resistance 1: 1.5950 Latest New York: 1.5769 Support 1: 1.5750 Support 2: 1.5700 Support 3: 1.5650 Comments Rate still two-way and extends range to start today; stops above the 1.5900/10 area triggered this morning. Try for highs on very low volume. Aggressive traders can ADD on this rally as volumes are low and this might be a head-fake. Rate closing under the 1.5800 area is another ADD, hold shorts and let it work. Stops under the 1.5800 area likely in size; expect a sharp break and a close under the 1.5800 area. Large names on the offer reported into the highs, look for a top to form. Major support at the 1.5580 area and slightly below. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction; which is a long way away at this point. Exponential reversal still valid. Data due Wednesday: All times EASTERN (-5 GMT) 2:45am EUR French Consumer Spending m/m 4:00am EUR Italian Retail Sales m/m 5:00am EUR Industrial New Orders m/m Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Also Check the Forex brokers section.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • USD starts firm in Asia, weakens into New York • Light volumes give traders caution • Sovereigns on the offer in GBP and EURO Today’s Economic Reports All times EASTERN (-5 GMT) • 8:10am USD Treasury Sec Paulson Speaks • 8:30am USD FOMC Member Plosser Speaks • 10:00am USD House Price Index m/m • 10:00am USD Richmond Manufacturing Index Almost no data anywhere so expect technical trade all day to start the week Looking Ahead to Wednesday All times EASTERN (-5 GMT) • 10:35am USD Crude Oil Inventories • 2:00pm USD Beige Book Continuing the slow start for US data this week. Summary The USD opened Asia firmer overnight and saw the best levels of the day in early trade. Volumes were light and traders report the focus has been more on the state of the US financial system more than Oil or Equities. In early NY trade the USD came under additional selling pressure form a weak round in European dealings, Wachovia Bank earnings were below estimates putting a damper on enthusiasm for the USD. Forex traders note overnight Russian interest on the buy side of EURO while Asian sovereigns were on the offer. Traders also note that CTA-type accounts were on the bid for USD/JPY around the highs at 106.60 area overnight suggesting that the drop to support around the 106.00 area in USD/JPY may have been some close-in stops placed before the Wachovia news; the rally in EURO and GBP also encountered Asian selling into the highs. The USD is on the defensive this morning but the volumes have been extremely light so far with technical S/R holding. Traders note that volatility may have been exaggerated due to thinner conditions and the lack of “real” news; the focus on US financials will likely only be temporary and once “real” news is out later in the week the USD weakness may have been temporary also. Aggressive traders can ADD to open shorts in EURO and GBP this morning as well as BUY USD/JPY; monthly highs in EURO and GBP are holding and with this rally in EURO the non-USD crosses have failed to extend recent gains suggesting a round of book-squaring/profit-taking by the longs is due. In my view, the USD is set to strengthen into the end of the week as this sell-off has been on low volume and can’t really extend losses past technical support levels already seen as attracting bids. Look for the USD to rally later today and into mid-week ahead of US data due Thursday. Of special note is the USD/JPY holding the 50 bar MA on the break this morning; in the past 60 days the 50 bar has tracked 400 points higher while the other averages have remained flat-to-lower suggesting there is near-term strength in the USD. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • USD mixed • Quiet Technical trade • Traders note volumes light with no major news Today’s Economic Reports All times EASTERN (-5 GMT) • 10:00am USD Leading Index m/m Almost no data anywhere so expect technical trade all day to start the week. Looking Ahead to Tuesday All times EASTERN (-5 GMT) • 8:10am USD Treasury Sec Paulson Speaks • 8:30am USD FOMC Member Plosser Speaks • 10:00am USD House Price Index m/m • 10:00am USD Richmond Manufacturing Index Summary The USD is mixed to start New York after a generally quiet overnight start to the week. Holding inside existing ranges on thinner volumes, the Greenback continues to consolidate and test technical S/R as traders look for near-term potential at current levels. Earnings for many US companies will be released this week and some desks report bids/offers are resting for both sides in the event that momentum picks up due to the news due; other major economic reports aren’t due until later in the week and that may be keeping a lid on activity for now. A minor Japanese holiday started overnight and for the day the Asian markets were very slow but the USD started weaker on follow-through from Friday’s close. After a brief run to the low end of the range the USD began to recover and is now higher on the day against GBP, flat against EURO and down slightly against other pairs. Cable had a high print at 1.9989 unable to clear stops said to be in range above e the 2.0000 handle; low prints were 1.9905 unable to clear stops under the 1.9900 handle either. Forex traders say the rate is tracking EURO but not as firm as EURO has been in demand on the crosses putting some pressure on Cable. High prints for EURO at 1.5910 attracted some bids but offers capped from technical traders and the rate is near the overnight lows at 1.5850; actual low prints at 1.5827. Traders note some news suggesting that talks surrounding Iran’s nuclear program have stalled have added some upside to the EURO this morning but no one is expecting an easy road with that debate anyway and that may be supporting EURO as Mid-East accounts look to flight to quality buying in the rate. USD/JPY is higher and above the 200 bar MA this morning for a high print at 107.16 before some light pressure was seen. Traders note that if the rate can manage a close above the 200 bar MA today a strong technical buy signal might be on the table for the technical traders; a rush of bids could start the Asian session overnight if that is the case. In my view, the USD is simply consolidating and a lot more two-way trade can be expected the next 24 hours. There is almost no news at all from everybody this week so short-term traders may have a lot of opportunity as the Greenback is likely to cover a lot of the same ground twice. Look for the Majors to extend their ranges during the day today. Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Daily Forex Analysis Today’s US Dollar Trading • USD rallies • US data benign • Traders expect more upside but with two-way action Overnight Preview • Look for the USD to continue to range trade • Majors to consolidate Looking Ahead to Thursday All times EASTERN (-5 GMT) • 8:30am USD Building Permits • 8:30am USD Housing Starts • 8:30am USD Unemployment Claims • 9:10am USD FOMC Member Kroszner Speaks • 10:00am USD Philadelphia Fed Manufacturing Index • 10:35am USD Natural Gas Storage Summary The USD is on the offensive today as lower crude oil prices and higher equities prices lift investor confidence. A slew of US data today was mostly benign but higher-than-expected US CPI data increased speculation that the US Fed will soon need to return to the tightening mode; additional comments from Chairman Ben Bernanke suggested that the Fed has not ruled out intervention on behalf of the USD. Although most forex traders consider the possibility of official intervention to support the USD as unlikely it was enough to drive the major pairs into the next layer of stops said to be resting under the initial lows seen overnight. Most pairs were on the lows for the day at the New York open but once the day got under way the USD began a steady climb with only minor corrections all day. GBP fell through support at the 2.0000 handle to uncover minor stops at the 1.9980 area for a low print at 1.9955; traders note that volumes were modest but that the GBP doesn’t “feel comfortable” above the 2.0000 Handle”. EURO also found stops but more of them as the rate fell through initial support at the 1.5900 area; stops under the 1.5880 area and more at 1.5860 area for a low print at 1.5799 before a minor bounce to the 1.5820 area was seen. Traders expect the rate to continue lower all week now that the 1.5800 handle was broken; even if only slightly. Volumes were good on the move. USD/JPY rallied to the 105.00 handle but was unable to trade above; preferring to trade firm into the 104.80/90 area all day. Support on dips was from semi-official names traders say but expect more two-way action as the rate is inside previous monthly ranges so far this week. USD/CHF is also on the offensive but unable to score the 1.0200 handle; high prints at 1.0190 left upside stops rumored to be 1.0200/10 area intact for now. With the move higher in equities and the strong sense of support seen today on the dip lower many traders are suggesting that the USD is about ready to rotate higher the next few days. Should that be the case, expect the recent S/R levels seen middle-to-late last week to hold on the upside. Two-way action with wider ranges appears to be the rule to end the week. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 2.0250/60 Resistance 2: 2.0200/10 Resistance 1: 2.0150 Latest New York: 1.9985 Support 1: 1.9950/60 Support 2: 1.9920 Support 3: 1.9900 Comments Rate can’t hold gains overnight, follows EURO lower after no buyers came out into the highs suggesting a top is forming. Hold shorts. Offers layered above the 2.0080 area absorb stops, follows EURO lower after in sympathy. Bids likely under the 1.9950 area to support near-term but offers are getting thick from large names traders say. Traders expect GBP to track EURO through this week. Traders expect a top to form as the rate had thinner volume on the rally last week into the reported option defense so far this week. Continue to expect a lot of cross-trading. Rate at technical resistance. Stops likely under the 1.9950 may overcome bids ahead. Data due Thursday: All times EASTERN (-5 GMT) USD/JPY Daily Resistance 3: 106.00 Resistance 2: 105.80 Resistance 1: 105.40/50 Latest New York: 104.97 Support 1: 104.00/10 Support 2: 103.80 Support 3: 103.50 Comments Rate drops on aggressive selling of EURO/JPY cross; model accounts on the offer traders say. Aggressive traders can cover shorts under the 104.00 handle to take gains. Look for a rally to sell into. Rate likely to have lots of selling interest on further strength to the 105.80 area; aggressive traders can re-set shorts on a bounce. Exponential reversal signal still valid, expect more two-way action. Stops are likely building under the 103.80 area but on first look this morning they were small. Rally will be a dead cat bounce I think. Data due Thursday: All times EASTERN (-5 GMT) 7:50pm JPY Monetary Policy Meeting Minutes 11:30pm JPY BOJ Governor Shirakawa Speaks Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading • USD sharply lower • EURO scores new highs and then reverses • USD recovers some poise into the close Overnight Preview • Look for USD recovery, move lower overdone • Book-squaring ahead of US data in the morning Looking Ahead to Wednesday All times EASTERN (-5 GMT) • 8:30am USD CPI m/m • 9:00am USD TIC Net Long-Term Transactions • 9:15am USD Capacity Utilization Rate • 9:15am USD Industrial Production m/m • 10:00am USD Fed Chairman Bernanke Testifies • 10:35am USD Crude Oil Inventories • 1:00pm USD NAHB Housing Market Index • 2:00pm USD FOMC Meeting Minutes Summary The USD is sharply lower against most pairs but off the early lows as the markets close after a wild ride all day. The Greenback was two-way all day but later in the day recovered some poise to end flat against EURO after falling to a lifetime low ahead of the New York open. The EURO actually reversed to make lows late in the session dropping through the 1.5890 area of reported stops to trade 1.5864 low print before the slide was stopped. Forex traders note there were large names on the offers but also on the bids but once the fix was done, volumes dried up for the most part. Flows remained orderly but thinner and some are suggesting that we are at key S/R; if that is the case then expect the USD to rotate higher the next 24-48 hours. Cable rallied right with EURO and scored a high print at 2.0158 before reversing as well; traders note that the housing market in the UK may have stimulated trader reaction today due to the size of recent data suggesting the BOE must remain cautious on moving rates. Combined with Bernanke’s testimony here suggesting the Fed will not tighten until needed convinced traders that the risk was for additional volatility and longs-liquidated. GBP fell to a New York low around the 2.0010 area and in fact is remaining there into the close. USD/JPY dropped to a low print at 104.14 before staging a rally and regained the 105.00 handle briefly. USD/CHF also suffered a bout of whipsaw and posted a low print at 1.0011 before staging a strong recovery into the 1.0130 area by the close. The USD certainly has some bounce coming against people who ran with early momentum; in my view the USD will likely add to these late gains and will put on some weight tomorrow and overnight. In my view today was a head-fake in the majors. The USD break was overdone. It is more likely that the EURO will sink farther tomorrow and to end the week as a lifetime high was not enough to attract additional buying and that pair actually reversed on the day. Cable will follow EURO and the USD likely to return to resistance in the other pairs. Look for book-squaring overnight tonight. forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5980 Resistance 2: 1.5950 Resistance 1: 1.5920/30 Latest New York: 1.5889 Support 1: 1.5850/60 Support 2: 1.5820 Support 3: 1.5780 Comments Rate blasts through offers into stops for a high print at 1.6033; a new lifetime high. Reverses after London fix and Bernanke testimony (hints at no rate hike). Large names on the offer reported into the highs, look for a top to form. Aggressive traders need to sell into the rally. Selling from solid sources capped rally Monday, possibly today as well. Technical trade and sympathy with Cable remains the main driver. Major support at the 1.5580 area and slightly below. Stops reported back under the 1.6000 area from late longs. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction; which is a long way away at this point. Exponential reversal still valid. Oil volatility helping to whipsaw the rate as are weak equities. Data due Wednesday: All times EASTERN (-5 GMT) 2:00am EUR German Final CPI m/m 2:45am EUR French CPI m/m 5:00am EUR CPI y/y 5:00am EUR Core CPI y/y forex[/acronym]-technical-analysis/usd-chf"]USD/CHF Daily Resistance 3: 1.0180 Resistance 2: 1.0120/30 Resistance 1: 1.0080 Latest New York: 1.0113 Support 1: 1.0020 Support 2: 1.0000 Support 3: .9960/70 Comments Rate follows Yen lower as expected, stops drive trade under the 1.0100 handle; “blue diamond” reversals on the Futures 60 minute chart. Trend line support broken and traders expect a test of parity soon. If short, look to ADD on a rally. If flat—be a buyer for the rally. Traders note support and trend line support failing completely and a rally will likely be sold. Stops said to be layered below the 1.0000 handle with tech support around .9950 area. Likely the rate will test under the 1.0100 area again for bids leaving a lot of potential two-way action. Buyers appear to be technical traders and expect some momentum accounts on the bid soon. The rate needs to be sold on any strength. Data due Wednesday: All times EASTERN (-5 GMT) 3:15am CHF Retail Sales y/y Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Today’s US Dollar Trading •USD two-way within established ranges •News is light, volumes too •Technical trade dominated all day Overnight Preview •Look for quiet conditions •Tests of S/R to cause a rotation Looking Ahead All times EASTERN (-5 GMT) •8:30am USD Core Retail Sales m/m •8:30am USD PPI m/m •8:30am USD Retail Sales m/m •8:30am USD Core PPI m/m •8:30am USD Empire State Manufacturing Index •10:00am USD Fed Chairman Bernanke Testifies •10:00am USD Business Inventories m/m •10:00am USD IBD/TIPP Economic Optimism Summary The USD continued in two-way consolidative trade today starting firmer in Asia but weakening a bit in New York trade this afternoon. After the London fix the Greenback came under selling pressure after the early strength seen this morning dried up as Crude Oil prices and weakness in Equities failed to inspire the USD bulls. Initially falling to lows at 1.9714 in late Europe Cable rallied to post highs on the day at 1.9965 before large offers were seen; the rate grinding higher on lighter volumes until stops were hit above the 1.9950 area. Cable found resistance at the 200 bar MA today suggesting that there is selling pressure by large players with bids on light drops. Forex traders were expecting the GBP to track EURO and once the semi-official names were on the bid in EURO the GBP rallied with it. EURO high prints at 1.5972 went unchallenged so far today but the rate is firm above the 1.5900 handle and traders are beginning to say that a test of the 1.60 handle looks almost certain after the lack of selling pressure seen recently. Traders also note that order boards are thin above the 1.5950 area with offers at the lifetime highs above the 1.6000 handle to 1.6020 area; above that the stops are thick suggesting the bias is for downside pressure as active players apparently are selling rallies while smaller or technical traders are buying dips. In my view, the upside is still limited and the potential for a large correction in EURO is still growing and a counter-trend move of significance may be brewing. USD/JPY continued to whipsaw covering a lot of the most recent ground again as technical support holds at the 106.00 area after a rally to the resistance area of 106.80 area attracted exporter selling by Japanese names. Traders note that the pair is range-trading within tighter and tighter ranges suggesting the rate is coiling for a strong breakout in one direction. Should that move be south there will be a large amount of stops layered under the 105.80 area in my view. I really think the pair is set to fall back and the move could be explosive. USD/CHF continues to chop away within established ranges; low prints at 1.0133 make for a test of the bottom of the recent trend; high prints overnight at 1.0253 were offered by large names in Asia traders say. The pair could be setting up for a broader pullback so any rally is a sell. For the most part, today’s USD trading has been about as expected with action confined to established two-way ranges. Look for tomorrow’s data to break the USD out of this area. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 2.0000/10 Resistance 2: 1.9980 Resistance 1: 1.9960 Latest New York: 1.9931 Support 1: 1.9800/10 Support 2: 1.9750/60 Support 3: 1.9700/10 Comments Rate rotates higher, clears close in stops from shorts. Follows EURO higher, but large stops above the market remain. Bids likely under the 1.9800 area to support near-term but sell signal is active; traders report a lot of stops building under the 1.9790 area. Traders expect GBP to track EURO through this week. Traders now expect a top to form as the rate had thinner volume on the rally last week into the reported option defense last week. Continue to expect a lot of cross-trading. Data due Tuesday: All times EASTERN (-5 GMT) 4:30am GBP CPI y/y 4:30am GBP Core CPI y/y 4:30am GBP RPI y/y forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: ? Resistance 2: 1.6000/10 Resistance 1: 1.5980 Latest New York: 1.5906 Support 1: 1.5820/30 Support 2: 1.5780 Support 3: 1.5750 Comments Rate has a short-squeeze again as stops above the 1.5800 and 1.5880 area trigger; model accounts on the bid Friday traders say. Selling from solid sources capped rally Monday, possibly today as well. Technical trade and sympathy with Cable remains the main driver. Major support at the 1.5580 area and slightly below. Stops likely under the 1.5680 area but option defense reported at 1.5650 area. Stops noted under the previous lows layered under 1.5600 to 1.5550 traders say but those are now out of range. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction. Exponential reversal still valid. Oil volatility helping to whipsaw the rate. Data due Tuesday: All times EASTERN (-5 GMT) 5:00am EUR German ZEW Economic Sentiment 5:00am EUR ZEW Economic Sentiment Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe •USD two-way •UK and Eurozone news push those lower •Technical trade likely to continue Today’s Economic Reports All times EASTERN (-5 GMT) •No reports due on Monday No real news until PPI on Tuesday. Looking Ahead to Tuesday All times EASTERN (-5 GMT) •8:30am USD Core Retail Sales m/m •8:30am USD PPI m/m •8:30am USD Retail Sales m/m •8:30am USD Core PPI m/m •8:30am USD Empire State Manufacturing Index •10:00am USD Fed Chairman Bernanke Testifies •10:00am USD Business Inventories m/m •10:00am USD IBD/TIPP Economic Optimism Summary The USD is back on the offensive this morning after disappointing economic news from the Europeans plus comments from the US RE: a Freddie/Fanny bailout encouraged traders to buy USD overnight. UK Producer Inflation hit double-digits in May and the GBP fell as speculation rose that the economy would slow more in coming months; traders note that more weight given to USD strength and EURO data than domestic news overnight. Forex traders bought USD across the board overnight once it was confirmed that the US intends to aid both Freddie Mac and Fanny Mae to prevent further declines in housing and economic slowdown. In my view, the aid is probably going to help but the overall volumes and upside seen in the USD looks more like a “knee jerk” reaction than a change in sentiment. Although EURO scored solid highs late last week and attempted to add to those gains today the rate fell on an unexpected drop in EMU Industrial Production; falling 1.9% last month. EURO dropped to a low print at 1.5840 after Russian and Swiss names were seen selling along with hedge funds. GBP dropped in sympathy with EURO for a low print after all the news at 1.9714 before recovering back near the closing range for Friday. USD/JPY and USD/CHF both rallied as the USD gained strength during the Asian session for highs in late Europe; USD/JPY found light stops for a high print at 106.82 while USD/CHF found stops as well but only managed a high at 1.0253. Both pairs have more stops above the market traders say but offers are expected to cap ahead of last week’s highs. In my view, the USD has traded more two-way and within range following through from last week and is not set to break out of those ranges early this week. Likely that it will take news due tomorrow and later to push trader’s perception that a correction in the USD is under way. Look for more technical trade the next 24 hours as traders adjust positions for smaller gains and whipsaw. forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.9980 Resistance 2: 1.9950/60 Resistance 1: 1.9920/30 Latest New York: 1.9871 Support 1: 1.9800/10 Support 2: 1.9750/60 Support 3: 1.9700/10 Comments Rate little changed but sellers in control to start; follows EURO higher, stops above the market cleared Friday and volumes dried up. Bids likely under the 1.9800 area to support near-term but sell signal is active; traders report a lot of stops building under the 1.9790 area. Traders expect GBP to track EURO through this week. Traders now expect a top to form as the rate had thinner volume on the rally last week into the reported option defense last week. Continue to expect a lot of cross-trading. Data due Tuesday: All times EASTERN (-5 GMT) 4:30am GBP CPI y/y 4:30am GBP Core CPI y/y 4:30am GBP RPI y/y forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: ? Resistance 2: 1.6000/10 Resistance 1: 1.5980 Latest New York: 1.5844 Support 1: 1.5820/30 Support 2: 1.5780 Support 3: 1.5750 Comments Rate has a short-squeeze last week as stops above the 1.5800 and 1.5880 area trigger; model accounts on the bid Friday traders say. Selling from solid sources capped rally Monday. Technical trade and sympathy with Cable remains the main driver. Major support at the 1.5580 area and slightly below. Stops likely under the 1.5680 area but option defense reported at 1.5650 area. Stops noted under the previous lows layered under 1.5600 to 1.5550 traders say but those are now out of range. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction. Exponential reversal still valid. Oil volatility helping to whipsaw the rate. Data due Tuesday: All times EASTERN (-5 GMT) 5:00am EUR German ZEW Economic Sentiment 5:00am EUR ZEW Economic Sentiment Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Read the Daily Forex Trading Analysis Overnight Asia/Europe • Rumors spike the USD higher in Asia • Stops and option barriers targeted in EURO • Volumes moderate, maybe a bit larger than expected Today’s Economic Reports All times EASTERN (-5 GMT) • 8:30am USD Trade Balance • 8:30am USD Import Price Index m/m • 9:55am USD Prelim U of M Consumer Sentiment Looking Ahead to Monday All times EASTERN (-5 GMT) • No reports due on Monday No real news until PPI on Tuesday Summary The USD was off to a quiet start in Asia last night as traders prepared for an uneventful overnight session ahead of US and European data. A brief flurry of USD strength was seen when rumors that the US Government may bail-out troubled Freddie Mac and Fanny Mae mortgage companies. The USD rallied to the best levels of the day quickly but as the rumor could not be confirmed the Greenback returned to pre-rally levels. Eurozone data was uninspiring as was UK data and both the EURO and the GBP remained contained to Asian ranges until the late European session. At the start of New York trade the Greenback came under selling pressure as French names were seen buying EURO for a Middle Eastern official; traders say stops and option barriers were targeted with the EURO making a high print at 1.5827 before dropping back under the 1.5800 handle. Traders also note that model accounts were on the bid over the 1.5800/10 area suggesting that a top might be in near-term. GBP followed EURO higher but offers were thick on the approach to 1.9800 handle and the rate could only manage a high at 1.9796 before dropping back. Stops for both pairs are likely in range but under the day’s lows so US data today may excite some fireworks. USD/JPY is a bit whippy this morning extending Asian highs to 107.31 before turning lower with other USD pressures for a low print at 106.89; all action still within recent ranges and a lot of two-way action appears on the board to end the week. No real news out of the Asian rim the past few days and the rate appears to be drifting a bit with most action contained to cross-spreaders who are content with current ranges. USD/CHF has been two-way as well overnight; high prints at 1.0306 with lows at 1.0242; a new weekly low but bids were waiting ahead of rumored stops at the 1.0230/40 area. HSBC bank suggested overnight that the CHF is no longer a “safe haven” currency pressured the USD higher a bit but the rate is tracking weakens to start New York. Loonie has dropped a bit and the USD has traded off recent weekly support suggesting that the recent range will hold and a rotation to the upside is coming. Forex traders expect that today’s US data will likely help the USD/CAD so a pop over the 1.0220 area again may be our sell opportunity. Look for the US trade Deficit to come in benign and a short-covering rally in the Greenback. forex[/acronym]-technical-analysis/gbp-usd"]GBP/USD Daily Resistance 3: 1.9900 Resistance 2: 1.9880 Resistance 1: 1.9840/50 Latest New York: 1.9802 Support 1: 1.9750 Support 2: 1.9700/10 Support 3: 1.9660 Comments Rate spikes to new high, follows EURO higher but rate still inside range. Bids around the 1.9660 area from “large names” likely still there; short-covering rally after lower end of range failed to attract further selling. Traders expect GBP to track EURO this week. Traders now expect a top to form as the rate had thinner volume on the rally into the reported option defense last week and early this week. Continue to expect a lot of cross-trading. Rate trapped for now, US data may help a breakout. Data due Monday: All times EASTERN (-5 GMT) 4:30am GBP PPI Input m/m 4:30am GBP PPI Output m/m 7:01pm GBP BRC Retail Sales Monitor y/y forex[/acronym]-technical-analysis/eur-usd"]EUR/USD Daily Resistance 3: 1.5880 Resistance 2: 1.5850/60 Resistance 1: 1.5830 Latest New York: 1.5823 Support 1: 1.5750 Support 2: 1.5700/10 Support 3: 1.5660 Comments Rate has a short-squeeze as stops above the 1.5800 area trigger. Model accounts on the bid traders say, selling from solid sources unable to contain the rally so far. Technical trade and sympathy with Cable remains the main driver. Close over the 1.5750 area argues for potential advance but expected sellers on approach to the 1.5800/20 area again overnight. Major support at the 1.5580 area and slightly below. Stops likely under the 1.5680 area but option defense reported at 1.5650 area. Stops noted under the previous lows layered under 1.5600 to 1.5550 traders say. Should cable break—EURO could go with it. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction. Exponential reversal still valid. Oil higher helping to lift a bit. Equities also may drive a bit today. Data due Monday: All times EASTERN (-5 GMT) 5:00am EUR Industrial Production m/m Analysis Provided by: Forexpros.com written by Jason Alan Jankovsky. Also Check the Forex brokers section. DISCLAIMER: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.