The weaker housing has the dollar moving lower

• gregmikefx
• January 5th, 2010

The Factory Orders were good but the sharp Pending Home sales is not and with ambiguous data, the dollar has moved lower.

The EURUSD has moved higher with the 1.4413 resitance level breached and the 100 and 200 bar MA on the 5 minute chart being tested at he 1.4425 level.   With the moving averages converged along with the price, we are still on the lookout for a trend like move as when price and moving averages converge, our rule is three is a crowd and the one that moves away is the price. So be on alert for a move away from the 1.4425 level.

The USDCHF has moved back down to test the key 100 day MA at the 1.0303 level. So far the price is holding keeping the bias to the upside. Keep an eye on the level.

The GBPUSD has moved above the 100 hour MA at the 1.6049 level and next targets the 200 day MA at the 1.6071.  Watch this level closely for confirmation of the upside move. A move above should lead to higher levels.   So far, however, the market is using the level as resistance.   Support comes in at 1.6036.

The market is at key levels in a number of currency pairs.  Traders can use the levels as low risk buying or selling levels, but be aware that a break should see momentum moves in the direction of the break.  Be aware. Be prepared.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Tickers: $EURUSD, $USDCHF, GBPUSD

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