Ahead of a U.S. jobs report that is anticipated to be as poor as any in recent memory the Usd is coming under early selling pressure from the major pairs. We have been commenting for two weeks about the fact that the major pairs are not being as easily sold on negative equity days, and in the week of regional interest rates it seems as though the markets may be ready to test support on the dollar index.
Whether this leads through to a sustained break of the four hour charts that are still at the moment have the Usd in control may be decided by the direction of European equity trade. If the recent selling is reversed on Friday it could be that a sizable move could be made on the greenback.
U.S. debt is looking expensive to buy, the economic outlook is no better than any other region, and it does look as though the rescue packages being put into place globally will lead to regional currency appreciation. We could be at a massive dollar swing point. We have updated the alerts page with an aussie trade, and will follow that with Jpy based ideas after seeing the European equity open.
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