Dollar Index (DXU9):
The Dollar opened lower at 79.81, but rose sharply after a weaker than expected Consumer Confidence report sent equity markets tumbling and traders seeking the safe-haven of Treasuries and Dollars. Prices rose to a mid-day Hi of 80.64, before trailing lower into the close of 80.42, up 31 tics. The s/t trend remains 'negative' w/improving momentum indicators. Traders will key on equity markets ahead of Thursday's Non-Farm Payroll Report and the shortened trading week. Continued flight to quality should support higher prices. A higher open should find Resistance at 80.81 and 81.20, while an open below 80.25 may find Support at 79.86 and 79.30.
Euro Currency (ECU9):
The Euro opened higher at our Pivot level of 1.4127 and retraced to a morning Lo at our initial Support level of 1.3998, as pressure from safe-haven buying in the Dollar weighed on prices. A mid-day bounce send prices higher into the close of 1.4040, down 41 tics. The s/t trend remains 'positive' w/firm momentum indicators. Longs should tighten 'stops' or buy 'puts' to reduce exposure. A lower open may find Support at 1.3976 and 1.3912, while an open above 1.4062 should find Resistance at 1.4126 and 1.4212.
Bob Kozak
Alaron Research Team
800.462.4691
bkozak@alaron.com
There is a substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.