US Dollar drifts, quiet trade

The Dollar Index holds drifts near 79.70 during yet another quiet session.

Overnight buying ran the index to a high of 79.95, but buyers were unable to recapture the key 80.00 level as sellers emerged at resistance.

EUR-USD is -10 pips at 1.2945 with trade holding in a 25 pip range for most of the day. Early comments suggesting Spain was willing to ask for a bailout, and that an agreement regarding what to do about Greece would be reached by the middle of November were the main drivers of early strength in the single currency.

Near-term resistance lies near 1.3000 while support comes into play in the 1.2800/1.2825 area.

Eurozone data is heavy as CPI, core CPI, ZEW Economic Sentiment, and German ZEW Economic Sentiment are all scheduled for release.

GBP-USD is flat at 1.6070 as a quiet trade nears the final hour. Traders continue to watch the 50-day moving average as it aids support in the 1.6000 area. Britain’s CPI, PPI input, and RPI will cross the wires early Tuesday.

USD-CHF is flat at .9330. Action has hugged the 200-day moving average for the past three weeks as neither bulls nor bears have been able to take control.

USD-JPY is +35 pips at 78.75 with trade taking place at its best level in a week. Trade remains rather lackluster despite the recent gains as neither bulls nor bears have been able to taken control near the key 78.00 level.

AUD-USD is +20 pips at 1.0255 as buyers ruin the pair higher for the fourth time in five days. Key support near the 1.0200 level has so far been able to hold with bulls now looking to regain the 200-day moving average near 1.0340. The latest Reserve Bank of Australia minutes are due out tonight.

USD-CAD is flat at .9780 after the Bank of Canada Business Outlook Survey showed sentiment worsened in the third quarter thanks to macro uncertainties. The pair raced to session highs near .9810 in reaction to the survey, but was quickly sent back down to pre-survey levels as sellers took control. Canada’s foreign securities purchases and manufacturing sales will be released tomorrow, and should have traders mindful of support near .9750.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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