Dollar Index (DXM9):

The DX opened lower at 83.96 as traders increased their 'risk-tolerance' ahead of the toxic-asset public bailout plan. Equity markets rose overseas and continued higher ahead of the U.S. open. Prices rose as equity prices retraced to morning lows, before continuing lower into the afternoon session against most major foreign currency markets. Prices ended the session at 83.94, down 40 tics. The s/t trend remains 'negative' w/weak momentum indicators. While 'quantitative easing' and the 'bailout' of banks toxic assets are helping to stimulate the flow of credit and higher equity prices, the DX will continue to toil until the yield-gap closes or the ECB follows the same plan. A lower open may find Support at 83.32 and 82.70, while an open above 83.99 should find Resistance at 84.61 and 85.28.

Euro Currency (ECM9):

The EC opened higher at 1.3587 and slid to a morning Lo of 1.3485, before continuing higher throughout the session along with equity prices, as risk-tolerance increased and traders rotated out of safe-haven assets; Treasuries, Dollars and Yen. Prices rose into the afternoon and ended the session at 1.3630, up 78 tics. The s/t trend remains 'positive' w/ over-bot momentum indicators. The inability to close above the previous Target Hi at 1.3737 on 3/19, along w/ comments from ECB member Alex Weber that further easing is likely, should weigh on prices over the medium term. Longs should tighten 'stops' or buy 'puts' to reduce exposure. A higher open should find Resistance at 1.3749 and 1.3868, while an open below 1.3617 may find Support at 1.3498 and 1.3366.