USD holds the Lows

A sharp decline in peripheral yields came as further examination of yesterday's ECB rate decision left some believing the central bank is on the path to action.

Italian and Spanish yields dropped sharply, falling as much as 75 bps up front, and that sparked the overnight rally in risk assets.

Friday's buying has the single currency testing its 50-Day Moving Average near 1.2400 resistance.

Eurozone Sentix Investor Confidence is due out on Monday. GBP-USD is +125 pips at 1.5640 with trade running back towards the upper end of its range.

Sterling has seen ranges of 150 pips or more in each of its past 3 sessions as Bulls and Bears continue to jockey for the upper hand.

USD-CHF is -150 pips at .9705 with today's heavy selling pushing the pair below its .9750 support. The next level of interest is near .9680 as support is aided by the 50-day moving average.

USD-JPY is +35 pips at 78.60 as today's gains have the dollar on track for its best close against the yen since July 18.

Support in the 78.00 area held strong after two weeks of continual tests with the last close below that level (aside from June 1) coming in February.

AUD-USD is +100 pips at 1.0560 and is on pace for its best close since the middle of March. The hard currency is roughly 1000 pips off its June 1 low as the continued flight into risk assets remains beneficial. Australia's ANZ Job Advertisements are due Sunday evening.

USD-CAD is -80 pips at .9990 as today's selling the dollar below parity against the loonie for the first time since the middle of May.

If the pair is unable to recapture parity in a timely fashion look for trade to fluctuate between .9800 and 1.0000 over the coming days/weeks as solid support lies in the vicinity. Canadian banks are closed on Monday for Civic Day

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.