$ For The Week of 12/26

US has one of the worst VISA application system. And with that, has dissapointed alot of foreigners to invest into USA.

Though every fundamentals I read are USD negative, USD had gained about 100 pips vs GBP last dec 26. Or was it simply because the brits are still away from the trading floor.

It seems the that the Eur and GBP are just about getting back into the range I had on my chart. I'll be curious to see if the barrier (around 9580 on the GBP)) acts as a resistance to the latest uptrend. Maybe the market was getting a feel for a stronger $, testing the waters to see how much it could strengthen before being rejected. GBP longs were found around 13.

Let's see if the $ regains some momentum or not...

From a technical standpoint the .9340 level seems to be suport given the confluence of two fib levels and trendline. If the price was to retrace to that level it might present a good buying oportunity. Also the more time the price spends in the descending flag the more significant a break out should be.

We saw the $ improve this A.M-hope u made something off it. We also saw supprt @ 3115 for the Euro and @ 9550 for the GBP. Looking at the range this morning, I see the Euro between 3135/15 and 9565/50 for the GBP so I'm looking to trade a break of that...

On the fundamental side-the new home sales caused the $ improvement. The disapointing xmas results at retailers has to be balanced with the big increase in sales at Amazon and other internet sites...the rebound in housing was easy to see, as housing prices and mortgage rates dropped while incomes and jobs improved. That should be good for tomorrow's existing home sales number.

Certainly all of today's numbers point to exactly what the Fed has been expecting...and they leave the Fed on hold past March.

The new and existing home sales was totally predictable, based on the amount of jobs being created and the fact that home prices and mortgage rates have decreased. Remember that Greenspan predicted a housing bottom about 2 months ago...

As things look, we're still more likely to get 1 increase from the BoE and ECB, but a lot of that is probably priced in already, so I don't see a lot of weakness for the $...who knows, perhaps the US economy has bottomed out as the housing market appears to have done.

Look at the boxes on the charts-the Eur and GBP range traded-it was obvious to see the support and resistance-once they broke resistance you were good to go...it doesn't need to be more complicated then that really...so I traded at the first break of resistance-then watched as price retraced and found support at the former resistance level-then traded there until price hit the .618<!-- / message --><!-- attachments -->

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