Dollar, after hitting a new low of 1.3861 since November 09, 2010, found support and managed to post positive close marginally against euro at 1.3815 yesterday against previous close of 1.3828. Tracking dollar, Dow Jones Industrial Average narrowed to intraday range of 12018.82-12056.39 after making a new high of 12056.9 since June 2008. NYMEX Crude settled at $90.92 yesterday with subdued volatility.
Though copper trading near new life time high of $4.5800 on COMEX, but changes of Profit taking are likely, if slips below $4.5160. Yesterday, US ADP employment figures showed payroll boosted better than expected by 187,000 in January, 2011 against median estimate of 140,000. Traders holding long in EUROUSD are advised to park profit in some of their positions in 1.3850-1.3940 range or maintain trailing stop below 1.3700. As already mentioned in our “Fx Daily Report” of February 01, 2011 release, USDCHF major support area is at 0.9300-0.9380 and till prices are not sliding below 0.9300 chances of pairing losses or resuming up rally are higher. Numbers to watch out are Jobless claim, factory orders, ISM Non-Mfg Index in US with European monetary policy decision that will give further direction to USD.
Instrument Trend Trading Strategy
EUR/USD Up Buy in the ranges of 1.3730-1.3735 Double Sell: Below 1.3700 TGT1:1.3850 TGT2:1.3940
GBP/USD Up No trade recommended
USD/CHF Sideways Buy at 0.9360-0.9370 S/L: Below 0.9299 TGT:0.9535
USD/JPY Sideways Buy in the ranges of 81.45-81.40 S/L: Below 80.93 TGT: 82.45
EUR/JPY Sideways Sideways in 111.75-113.00 range
AUD/USD Up Buy in the ranges of 0.9992-0.9995 S/L: Below 0.9965 TGT:1.0254
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