Dollar Index (DXM9):
The DX opened higher at 86.09 after concerns that the U.S. auto-makers best option my be 'bankruptcy', causing global equity markets to sell-off and as traders seek the safe-haven of Treasuries and DX. Prices rose to a morning Hi of 86.615, before trailing lower towards the day-session close of 86.33, up 75 tics. The s/t trend remains 'positive' w/ improving momentum indicators. Pressure on the EC to lower rates at Thursday's ECB rate meeting, could support a higher DX. A higher open should find Resistance at 86.23 and 86.89, while an open below 85.20 may find Support at 84.54 and 83.50.
Euro Currency (ECM9):
The EC opened lower at 1.3191 as traders rotated out of most major foreign currency markets and into safer-haven markets as equity markets sold-off on the negative news that U.S. auto-makers may end up filing bankruptcy. Prices retraced to a mid-day Lo of 1.3114, before bouncing towards the day-session close of 1.3164, down 141 tics. The s/t trend remains 'negative' w/neutral momentum indicators. Weaker than expected economic data out of Germany and a probable rate cut of 50bp -100bp at Thursday's ECB rate meeting should pressure prices lower. Tech's will look for another test of the 50% Fib Retr. level of 13100. A lower open may find Support at 1.3177 and 1.3049, while an open above 1.3385 should find Resistance at 1.3513 and 1.3721.
Canadian Dollar (CDM9):
The CD opened lower at .7985 and continued lower throughout the session against the stronger DX. Weaker oil/metals prices and the likelihood of a bankruptcy by U.S. automakers sent the CD to a daily Lo of .7912, before bouncing into the day-session close of .7914, down 177 tics. The close below the 10-day MA changes the s/t trend to 'negative' w/ neutral momentum indicators. A break below the .618 Fib Retr. level of .7871 could weigh on prices. Traders will look for support from the equity markets to loosen the DX grip, which could come on a weaker than expected U.S. Payroll Report on Friday. A lower open may find Support at .8035 and .7978, while an open above .8098 should find Resistance at .8155 and .8218.
