Stocks and Dollars

The US session yesterday saw the Dollar give back most of the gains it had built up on Friday. The Dollar Index is back down near 77.74. The prime gainer yesterday was the Pound (1.6050) on prospects that the Bank of England would raise rates sharply in 2011. The Aussie

No losses yesterday but I haven’t given up on the risk of a pullback to the broad 110.40-90 area. Even in a larger bullish structure I’d expect this. However, equally I wouldn’t want a break above 112.70… We’ll first need loss of the 112.18 low and once seen this should

Euro 1.3725 Initial support at 1.3541 (Jan 24 low) followed by 1.3499 (Dec 14 low). Initial resistance is now located at 1.3758 (Jan 27 high) followed by 1.3825 (Nov 10 high)

U.S. Dollar Trading (USD) with selling overdone on Friday the market was buoyant seeing most pairs gain against the Dollar. Oil was extremely strong with Brent Crude breaking above $101 a barrel. Economic Data was strong with Chicago PMI jumping to 68.8 vs. 66.8 previously. In US stocks, DJIA +68

Risk appetite partly rebounded last night helped by economic data and a more sanguine view of Egypt. The S&P500 is currently up 0.8%. Among the batch of US data released, consumer spending and the Chicago PMI were the talking points, surprising higher. An early estimate of Eurozone CPI also surprised

EUR/USD Today’s support: – 1.3632, 1.3579 and 1.3546(main), where correction is possible. Break would give 1.3518, where correction also may be. Then follows 1.3500. Break of the latter would result in 1.3486. If a strong impulse, we would see 1.3447. Continuation will give 1.3412.

The cable, by analogy to euro, has continued growth, transforming the prospective Zigzag in the impulse. Probably wave, the wave [b] of B becomes the Expanded Flat correction. At the same time, growth of pair increases probability of realisation of the alternative scenario. But while critical level isn’t overcome, there

GBP/USD – Price action on GBP/USD (a daily chart of which is shown) as of Monday (1/31/2011) has made a significant bullish push, reaching up once again to break tentatively above key psychological resistance around the 1.6000 price region. This occurs in the midst of approximately two weeks of a