Dollar Down on Increased Demand for Risky Assets

Increased demand for higher risk assets is helping to drivedown the U.S. Dollar index at the mid-session. The Dollar is trading loweragainst most major currencies with the exception of the lower yielding JapaneseYen.

Increased demand for higher risk assets is helping to drivedown the U.S. Dollar index at the mid-session. The Dollar is trading loweragainst most major currencies with the exception of the lower yielding JapaneseYen.

The EUR USD is trading higher at the mid-session. Thismorning’s rally has driven the Euro into a Fibonacci retracement level at1.2345. Additional resistance is coming in at a downtrending angle at 1.2371. Regainingboth of these prices could trigger a further rally to the 50% price at 1.2407.

The GBP USD is moving higher and away from the support baseit has been building over the last five days. Based on the short-term range of1.5391 to 1.4229, traders should look for a near-term retracement to 1.4810 to1.4947.

The USD CHF is trading weaker after confirming its closingprice reversal top at 1.1695. Downside momentum is building which could drivethis market into the retracement zone at 1.1309 to 1.1218.

Increased demand for higher yielding assets is helping toboost the USD JPY. Trading has been quiet lately indicating impendingvolatility. Watch for a surge in U.S. equities to trigger a quickrally back to 91.61 over the near-term.

Strong crude oil is helping to pressure the USD CAD. Onceagain this market has rejected the former top at 1.0738. Downside momentum isbuilding which could drive this market to 1.0481 to 1.0394 over the near-term.

The AUD USD is trading higher at the mid-session. Strongerglobal equity markets are the catalysts behind today’s rally. The chartsindicate that there is plenty of room to the upside with a possible retracementto .8727 to .8883 likely over the short-run.

The NZD USD has confirmed the closing price reversal bottomat .6560. The daily chart indicates that this market could retrace back to.6942 over the near-term.

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... More

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