The weaker housing has the dollar moving lower

Written January 5, 2010 at 10:23 AM EST by  

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

gregmike-06096

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.

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

gregmike-06098

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.

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