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The Currency Futures Report

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Dollar 'Pauses' Ahead of FOMC Results

Wed, Aug 12 2009, 08:18 GMT
by Bob Kozak

Alaron


Dollar Index (DXU9):

The DX opened lower at 79.21 and rose to a morning Hi of 79.475 as equity markets retraced and traders sought the safe-haven of Dollars and Treasuries.
Prices retraced to a mid-day Lo of 79.16 as equity prices rebounded and ended the day-session at 79.28, down 10 tics. The s/t trend remains 'positive' w/ firm momentum indicators. Traders will look for movement in foreign equity markets as a key to direction of the Dollar, however, with results of the FOMC coming out, longs should tighten 'stops' of buy 'puts' to reduce exposure. A lower open may find Support at 79.10 and 78.93, while an open above 79.29 should find Resistance at 79.46 and 79.65.


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