Reply #5: daily dollar watch

[UpInArms]

http://quotes.ino.com/chart/?s=NYBOT_DX

Last trade 91.07 Change +0.08 (+0.09%)

Dollar Stalls As Lack Of Liquidity Sets In

http://www.dailyfx.com/story/dailyfx_reports/daily_tech...

EUR/USD – Euro bulls once again felt the brunt of the greenback offers as the pair tumbled toward the 1.1800 figure thus working its way through the support created by the combination of the 20-day, 50-day SMA’s and the 23.6 Fib of the 1.2588-1.1639 USD rally. A further move to the downside will most likely see the pair head below the 1.1800 figure and target the single currency bids around 1.1776, a level established by December 12 daily low. A sustained downside momentum will most likely see the EUR/USD head lower and target 1.1639, a level marked by the 2005 Low, breaking of which will most likely see the dollar traders set their sights on the psychologically important 1.1500 handle, a level defended by the single currency bids around 1.1546, an October 17 2003 daily low. Indicators are favoring the euro longs with both positive momentum indicator and MACD treading above the zero line, while neutral oscillators give either side enough room to maneuver.

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USD/JPY – Japanese Yen bulls continued to keep a tight lid on the price action after the pair failed to break above the active offers around 117.37, a level established by the 23.6 Fib of the 104.16-141.46 USD rally, and is further reinforced by the 50-day SMA at 117.83. As dollar longs continue to bid up the pair, the next move to the upside will most likely see the greenback traders extend their gains above the 118.00 figure and take out the yen defenses around 118.21, a level established by the November 23 daily low. A sustained upside momentum on the part of the greenback longs will most likely see the USD/JPY head higher and aim for the offers above the psychologically important 120.00 handle at 120.46, a level marked by the December 13 daily high. Indicators are diverging with negative momentum indicator below the zero line while positive MACD is sloping downward toward the zero line, with ADX above 25 at 35.38, signaling an existence of a maturing trend, not a direction of one, while neutral oscillators give either side enough room to maneuver.

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