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The Currency Futures Report

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Canadian Dollar 'Higher' on Improved Sales Survey

Tue, Jul 14 2009, 05:36 GMT
by Bob Kozak

Alaron

Canadian Dollar (CDU9):

The CD opened higher at .8604 and slid to a morning Lo of .8579, before following equity markets higher, after a bullish survey from the BoC showing the nation's businesses were the most optimistic in almost a decade on projected sales.
Prices rose to a daily Hi of .8685, as the DX retraced on an increase in risk-appetite, before drifting lower to a close of .8677, up 75 tics. The close above the 10-day MA changes the s/t trend to 'positive' w/neutral momentum indicators. In order for prices to continue higher, crude oil prices have to increase to increase export revenues. A higher open should find Resistance at .8718 and .8758, while an open below .8644 may find Support at .8603 and .8529.

Dollar Index (DXU9):

The DX opened lower at 80.35 and rose to a morning Hi of 80.62 as equity markets retraced. A 'bullish' earnings report on Goldman Sachs and the banking sector helped the financials push equity prices higher through to the close, sending the DX lower to a day-session close of 80.31, down 12 tics. The s/t trend remains 'negative' w/neutral momentum indicators. Traders will see if the rally in the equity markets continue to increase 'risk-appetite' or lead to profit-taking as 'buy the rumor....' kicks in. A lower open may find Support at 80.12 and 79.93, while an open above 80.41 should find Resistance at 80.60 and 80.89.

Euro Currency (ECU9):

The EC opened higher at 1.3976 as equity markets improved in Europe and the DX lower ahead of the U.S. open. As U.S. equity markets improved and the DX retraced, the EC rose off the 1.3915 morning Lo and climbed to a daily Hi of 1.4003, before ending the day-session at 1.3974, up 24 tics. The s/t trend remains 'negative' w/neutral momentum indicators. A continuation of hgher equity prices should support the EC. A higher open should find Resistance at 1.4012 and 1.4050, while an open below 1.3955 may find Support at 1.3917 and 1.3880.

Published on  Tue, Jul 14 2009, 05:40 GMT