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The Currency Futures Report

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Risk−Averse Traders Seek Safe−Haven of Dollar

Wed, Jul 1 2009, 05:53 GMT
by Bob Kozak

Alaron


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.

Published on  Wed, Jul 1 2009, 05:55 GMT


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