USD NEWS –08:30 Empire State Productivity, 09:00 TIC foreign investments.
STRONG
Short GBP/USD 1.5650*
Long USD/JPY 90.10
WEAK
Long* EUR/USD 1.37****
Long* GBP/USD 1.5730*
Short USD/JPY 89.70
Short USD/CAD 1.0400
The values in the T-chart data represent the next levels of significant support or resistance with trade opportunities to these levels, or breakouts beyond these levels. The use of Astrid denotes key sustained support or resistance levels, or counter trend opportunities in the market.
Futures investors are liking the markets today with Gold contracts up $24 and 1114 and Oil trading higher by $1.24 this morning to trade at 75.39. The US Index futures remain higher but are pulling back from overnight highs helped by Banking and Finance. The USDX is a little lower but remains above $80 at $80.21 this morning.
The US dollar moved lower on the CAD but has stablized ahead of Empire State and TIC this morning. The EUR actually found some strength late yesterday and followed through in early overnight trading with stronger markets in Asia and early european trading, but has moved back from highs, but is once again firming up on the USD ahead of the open bell for the US trading session.
Keep an eye on the market bulls today. If the willingness to buy into additional risk in the markets continues today with good news from the New York Fed District (Empire State) and support from foreign investments in the TIC, we would look for some USD weakness, and continued strength in the commodity currencies like the AUD, NZD, and CAD.
NOTE: The USDX has formed a nice double top on the 180 minute interval chart with support at 79.75 to 79.65, a breakdown could push the US Dollar towards 78.85, this would put selling pressure on the USD in the Forex pairs, while allowing physical commodities (Futures) to see price gains with higher Gold and Oil.
USD NEWS –08:30 Weekly New Unemployment claims, markets are looking for the number of new claims to drop.
STRONG
Short EUR/USD 1.3700*
Short GBP/USD 1.5500*
Short AUD/USD .8860
Short NZD/USD .6960
WEAK
Long* EUR/USD 1.3850*
Long* GBP/USD 1.5650*
Long AUD/USD .8900*
The values in the T-chart data represent the next levels of significant support or resistance with trade opportunities to these levels, or breakouts beyond these levels. The use of Astrid denotes key sustained support or resistance levels, or counter trend opportunities in the market.
USD NEWS –08:30 Trade Balance may be delayed due to weather.
STRONG
Short EUR/USD 1.3730
Short GBP/USD 1.5585
Long USD/CHF 1.0670
Short AUD/USD .8730
Short NZD/USD .6920
WEAK
Long* EUR/USD 1.3850***
Short USD/CHF 1.0600***
Long AUD/USD .8800
none NZD/USD .6970****
The values in the T-chart data represent the next levels of significant support or resistance with trade opportunities to these levels, or breakouts beyond these levels. The use of Astrid denotes key sustained support or resistance levels, or counter trend opportunities in the market.
With the influx of unscheduled news today (bailing out Greece 2/9/2010), it really helps us figure out what kind of trader we are. Are you an aggressive or conservative trader? Chances are if you loved trading the spikes today, you are an aggressive trader. Conversely, if you saw risk everywhere, chances are you are a conservative trader. Now trade consistently as an aggressive trader or consistently as a conservative trader! Both make PIPs, just in completely different ways!
Learn how to trade more consistently with the "Trade with Me" hosted by myself, Mark Schumacher.
http://www.wizetrade.com/Community/content/TradeWithMeWebinars.aspx?a=anonymous#Mark_Schumacher
Good trading!
Mark Schumacher
USD NEWS – 10:00 Low Impact Eco Opt and Wholesale Inventories, Markets are turning bullish putting some pressure on the USD. Careful if going long the USD.
STRONG
Short EUR/USD 1.3700
Short GBP/USD 1.5550***
Long USD/CAD 1.0750
WEAK
Long* EUR/USD 1.3850
Long GBP/USD 1.5660
Long AUD/USD .8740*
Long NZD/USD .6930*
Short USD/CAD 1.0675
The values in the T-chart data represent the next levels of significant support or resistance with trade opportunities to these levels, or breakouts beyond these levels. The use of Astrid denotes key sustained support or resistance levels, or counter trend opportunities in the market.
US Index Futures are just a little bearish as we move towards the open bell this morning. The data calendar for the week is quiet until Wednesday morning when the Bank of England will release their inflation report. We do have earnings this week, and after last year, everything seems to look better by comparison, so this could encourage some bullishness in the equity markets that might create a pull back against the recent USD Strength, but watch for the breakouts from the narrow ranges established overnight.
The G7 conference concluded with an agreement to keep stimulus in the markets for now, and the Euro zone was given the go ahead to work towards resolution of financial crisis in Greece, not to overlook housing in Spain and other challenges in Portugal. The market reaction to all the goings on at the G7, not much of anything, which is better than having the bears run wild had exit strategies from stimulus been more vigorously discussed.
Watch the equity markets for the next couple of days for clues on Forex trends.
USD NEWS-08:30 US Non-Farm Payrolls, Annual Unemployment Rate, Average Hourly Earnings.
Keep in mind that a worse than expected number for Non-Farm will have an initial impact of USD weakness, but it will also weaken the equity markets, which could cause the USD to whip back the other direction. Additionally, a better than expected report would initially strengthen the USD, but then the buying pressure in the futures ahead of the open bell would push the USD back down.
The tendency with Non-Farm has been that we will see strong initial moves in the first 5 minutes with a retrace in the 10 to 15 minutes after the report is released, and then a follow through that will trend based on Index Futures and Equity markets into the afternoon.
STRONG
Short EUR/USD 1.3650*
Short GBP/USD 1.5650
Long USD/JPY .8980**
Long USD/CAD 1.0780
WEAK
Long* EUR/USD 1.3850
Long GBP/USD 1.5850
Short USD/JPY .8930
Short USD/CAD 1.0700
The values in the T-chart data represent the next levels of significant support or resistance with trade opportunities to these levels, or breakouts beyond these levels. The use of Astrid denotes key sustained support or resistance levels, or counter trend opportunities in the market.
