Intraday Market Thoughts

Archived IMT (2011.03.30)

by Ashraf Laidi
Mar 30, 2011 9:19

Despite last week's bruising, the US dollar index ended well above that 3-year trendline support at 76.00. Today, it remains above the same key foundation with the help of Fed hawkishness as Bullard (non-voter) joins Fisher and Plosser in expressing his stance his stance against QE3. The revolving uncertainty with Portugal's finances and the latest downgrade of Portugal/Greece have certainly helped USDX as EUR makes up 57% of the index. In contrast, the record-breaking AUDUSD (at 1.0312) is NOT part of the index, thereby, sparing the US currency with any damage. Also adding to USDX stability is GBPUSD, whose weekly stochastics deteriorate by the day, eyeing $1.5840. USDJPY breaks out of 83, nearing further the 83.50 mentioned in yesterdays IMT. While we may encounter some Yen-positive risk-aversion in the event (just in case) of a disappointing US Friday jobs report, but the weekly stochastics and fundamental flows into Q2, suggest 83.90, followed by 84.40. Following up my bearish tweets on EURAUD, I stick with EURAUD target at 1.3420 on the weekly chart. ***** I will be providing these tradable tweets on my NEW PRIVATE TWITTER FEED


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