Tuesday, July 23, 2013

Dollars & Cents

Dollars & Cents

Equities pulled back very slightly after a bullish open today with the markets trading on light volume. Earnings reports are generally positive but not stellar and the markets are stoic in their response. The dollar index traded back to near term support and paused.

The EUR/USD gained more today, moving to the near term resistance level as discussed in yesterday’s newsletter. Historically, the close prices have remained near 1.3250 as resistance while the shadows have pushed 1.33 and then 1.34. Thursday is likely to be a bullish day in the equity market and this pair has some room to be a little more bullish before selling off. (see EUR/USD below)

The USD/CAD continues to fall and rising oil prices are accelerating this pair to the downside. We are watching for price to drop to trend support. If priced breaks through 1.0250, we will likely set a buy limit at trend support near 1.0150. (see USD/CA below)

The GBP/CHF traded relatively flat again today, closing within a few pips of the past 3 day closes. We will watch for a bullish close tomorrow and move up our stop from break even to profitability. (see GBP/CHF below)