RJO FuturesCast

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Currencies

Look to Fade Rallies in USD

Posted 11/08/2018 8:52AM CT | Tony Cholly

The dollar is showing some strength early on this morning, but until the December contract breaks above 9628, the strength will not negate the downward bias that’s been plaguing it since the last trading day of October. However, don’t be surprised to see the Fed meeting lift the dollar this morning. On the contrary, expectations for ongoing claims to show minimal change, fails to add new economic hope from yesterday. Support comes in at 9555 and 9512, with resistance at 9634 and 9671.

The Euro is trading lower today and this is probably the result of the overdone compacted rally yesterday and the currency is probably held back as a result of a narrowing of the German trade surplus.  While the markets were once again presented with ideas that the exit might be possible soon, the trade has basically become immune to such delays.  Support is seen at 114.1500 and resistance is at 115.3000.

U.S. Dollar Index Dec ’18 Daily Chart

U.S. Dollar Index Dec '18 Daily Chart

Euro FX Dec ’18 Daily Chart

Euro FX Dec '18 Daily Chart

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Tony Cholly

Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
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