The U.S. Dollar is mounting a small comeback at themid-session after trading sideways-to-lower for most of the morning.
The U.S. Dollar is mounting a small comeback at themid-session after trading sideways-to-lower for most of the morning. The lackof fresh news regarding Greece following last night’s better than expectedauction and the anticipation of tomorrow’s U.S. economic data and Fed testimonyis helping to limit trading.
The Euro has been wavering from up a few to down a few mostof the New Yorksession. Last night Greececoncluded a successful 6-month and 52 week T-Bill auction. Demand was strongand the bid-to-cover impressive. Interest rates were high, but better than theywere last week. Traders are now waiting for the next move by Greece. Theyare either going to be satisfied with the proceeds of the auction or have to usesome of the funds available from the European Union bailout package. Investorsremain cautious about going long the Euro. Hedge funds are still sellingrallies.
The GBP USD traded higher after a better than expected tradereport. The U.K.trade data showed that the deficit narrowed substantially in February. Afterthe initial thrust to the upside, the British Pound settled into a range beforeturning lower. Traders are becoming nervous about holding on to longs ahead ofnext month’s elections. Investors are still waiting for either party to submita plan to reduce the budget deficit. Yesterday’s closing price reversal top hasbeen confirmed, indicating a downside bias.
The sideways Euro is helping to hold the USD CHF in a rangebetween two retracement levels at 1.0610 and 1.5068. Look for this pair toremain range bound until the Euro makes a move. A weaker Euro will pressure theSwiss Franc.
The inability to break U.S. equity markets is lending somesupport to the USD JPY but this pair is still trading lower in limited trading.This pair is walking down a Gann angle at 93.27. If this angle fails, then lookfor an acceleration to 93.67. A continuation of the downtrend could trigger abreak to 92.26.
The USD CAD is trading range bound and has been in a tightrange for several days. Oversold conditions are contributing to the lowmomentum and low volatility. As long as last week’s reversal bottom at .9975holds as support, then there is the possibility of a rally back to 1.0138.
The Australian Dollar is under pressure at the mid-sessionin a follow-through break following Monday’s closing price reversal top.Traders have decided to pare positions after Monday’s housing report shouldmortgage approvals had dropped unexpectedly. This could mean the Reserve Bankof Australiamay be considering skipping an interest rate hike at its next session. Thechart indicates a move to .9194 is likely over the near-term.
The NZD USD is trading lower at the mid-session. The lack ofbuyers and the lack of conviction in holding higher yielding assets are helpingto put pressure on this market.
James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to
commodity trading advisor.
Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis.
His firm, J.A.H. Research and Trading publishes The Forex
Pattern Price Time Report and The Futures Pattern Price Time Report, daily,
weekly, and monthly newsletters. He also manages an educational, research and consulting service.
James has provided technical analysis for Autochartist.com, The Hightower Report, eSignal, FutureSource, CQG and numerous financial market websites including ForexHound.com, FuturesHound.com, ForexTV.com, IBTimes.com, Investopedia.com, Traderslog.com, TradingMarkets.com and TraderPlanet.com.
Mr. Hyerczyk has presented seminars for Bloomberg, Reuters, Futures Magazine and the American Association of Individual Investors (AAII) in the United States, Malaysia, and Guatemala as well as private seminars in Budapest and Moscow. He also facilitated a technical analysis class at the Chicago Mercantile Exchange.
His published works include articles for Futures Magazine, Trader?s World, SFO Magazine, Forex Journal, and Commodity Perspectives (Commodity Research Bureau).
His book Pattern, Price & Time, published by John Wiley & Sons, Inc. in 1998, is available in English, Russian, German, Japanese and Chinese editions. The second edition of the book was published in April 2009.
Aside from his published works, Mr. Hyerczyk has appeared on the Financial News Network (FNN), Reuters Financial Television, Ask the Expert on WCIU-Chicago and FirstBusinessX.com. He was a weekly commentator on Money Radio.
Mr. Hyerczyk is a member of the Market Technicians Association and holds a Masters degree in Financial Markets and Trading from the Illinois Institute of Technology....More
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