Tuesday, August 13, 2013

Forex FlashBeck

Dollars & Cents


Equities dropped again to test the near-term support level seen over the past 2 weeks but were able to rally and close up slightly by the end of the day. The dollar continues to gain as bonds are being sold off again. The dollar strengthening could also be an indication of money leaving other countries and moving to the U.S. as a safe harbor.

The EUR/USD continues to move lower. As we commented yesterday, we expect a test of 1.31 and then potentially a move to 1.28 for a longer term horizontal support test. (see EUR/USD below)



The USD/CHF continues to move in our favor. We are watching for a small pull back to reset our stops and to watch for an opportunity to take profits on one of the contracts. We will continue to monitor this position. (see USD/CHF below)



The USD/CAD bounced today, creating a higher low. Combined with the lower high from last week, we are seeing continued consolidation. We are still going to watch for a buy limit potentially near 1.02 and a sell limit near 1.0450 or 1.610. (see USD/CAD below)

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