U.S. Dollar Up a bit on Job Claims but Mostly Rangebound

The U.S. Dollar opened mostly lower against most majors butrecovered from its early losses following a better than expected Weekly InitialClaims Report.

The U.S. Dollar opened mostly lower against most majors butrecovered from its early losses following a better than expected Weekly InitialClaims Report.

The Dollar gained a little versus the Euro following areport which suggested that a German bank may issue more shares. This actioncould mean a capitalization problem but the mild reaction suggests it may notbe a major problem. This is also not a fresh development becauserecapitalization was mentioned in the European stress test report.

While recapitalization may not be that big of an issue, thisstory combined with chatter earlier in the week about banks carrying riskysovereign debt, could lead to the start of a liquidation break by nervous longs.In addition, aggressive bears may begin to smell a little blood in the marketwhich may lead them to press the short side a bit.

Technically, the EUR USD remains in an uptrend, but today’slower close brought it closer to testing a pair of swing bottoms at 1.2625 and1.2587. A violation of these two levels will turn the main trend down on thedaily chart.

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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