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Trade Desk Thoughts: Usd Swing Point- Cad Leads The Way

Published 12/31/2000, 07:00 PM
Updated 02/01/2010, 04:00 PM
AUD/USD
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USD/CAD
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Trade Desk Thoughts:

Usd Swing Point

USD/CAD was the first pair to trigger a move against the Usd, after the 4 Hour chart Bollinger Band center line was breached at the same time that TheLFB Swing Point Support 1 area was broken.

The move was backed by long gold, long oil, and long equities, but not much support came from the other major pairs. AUD/USD pushed the dollar lower, ahead of the Reserve Bank of Australia interest rate decision at 22:30 EST, but was unable, for now, to breach Resistance 1, or the Bollinger Band 4 Hour center line.

The Short side of the dollar will be easier to achieve on these two commodity based pairs after the $30 long move made by gold traders on Monday.

The European pairs ran out of puff after using up energy absorbing early session moves on Monday, but have at least moved off the near-term dramatically oversold reads that had plagued them from the previous sessions of trade.

In all, traders have a swing point on the dollar that may explode into a sustainable move if Asian markets buy into oil and gold overnight.

 

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