The U.S. Dollar is trading mostly loweragainst the major currencies under thin conditions. News that the U.S. economy isstill sputtering along has traders confident the Fed will implement anotherround of quantitative easing at its meeting on November 2 and 3.
The U.S. Dollar is trading mostly loweragainst the major currencies under thin conditions. News that the U.S. economy isstill sputtering along has traders confident the Fed will implement anotherround of quantitative easing at its meeting on November 2 and 3.
Traders for the most part are still bettingon the short-side of the Dollar. Although the Fed may disappoint with the sizeof its allocation after this meeting, investors expect the economy to remainweak. This means stimulus is likely to continue to flow from the Fed for sometime until the economy can get back on track. All of this is adding up to moreweakness for the Dollar.
At the mid-session, the AUD USD is tradinghigher, boosted by demand for higher risk assets and short-term oversoldconditions. Technically, the Aussie is finding support inside of a retracementzone at .9722 to .9658. An uptrending Gann angle comes in at .9710. This helpsform an important support cluster at .9722 to .9710.
Downside momentum is building in the USDJPY which could drive this currency pair through the low for the week at 80.41.
The USD CAD is currency testing support ona 50% level at 1.0176. A failure to hold this level could drive this marketdown to 1.0129.
The daily EUR USD is in a downtrend, butthe coiling action is indicating impending volatility. 1.4080 is the new top,1.3733 is the new bottom. Watch for a breakout on either side as this coilingformation develops.
