Dollars & Cents
Equity futures edged higher again. The slight rise was accompanied by a large
POMO day from the Fed and comes as no surprise. The markets are coiling and we
are watching for a correction after the Chairman’s statement. Any hints of a
slowing in the Fed’s purchases in the near future could send the markets into a
correction.
The EUR/USD rallied today with the weakness of the dollar in anticipation of Ben Bernanke’s statement on Wednesday. Thought he bounce was solid today, we expect the trend to continue lower. In the event there is a major shift in monetary policy from the Fed, the trend could change dramatically. (see EUR/USD below)
The USD/HKD pulled back but we still expect to see a higher low carved out followed by a breakout through the resistance level. If we don’t break resistance this next move, we will take profits. (see USD/HKD below)
The AUD/CAD continued to edge higher. Oil prices bounced off of resistance and gold is slowing at support which would add to this pairs strength. If oil prices continue to fall, this pair will probably jump higher. (see AUD/CAD below)
The EUR/USD rallied today with the weakness of the dollar in anticipation of Ben Bernanke’s statement on Wednesday. Thought he bounce was solid today, we expect the trend to continue lower. In the event there is a major shift in monetary policy from the Fed, the trend could change dramatically. (see EUR/USD below)
The USD/HKD pulled back but we still expect to see a higher low carved out followed by a breakout through the resistance level. If we don’t break resistance this next move, we will take profits. (see USD/HKD below)
The AUD/CAD continued to edge higher. Oil prices bounced off of resistance and gold is slowing at support which would add to this pairs strength. If oil prices continue to fall, this pair will probably jump higher. (see AUD/CAD below)
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