19 July 2012 12:42 GMT 
Prices took out support at the bottom of what appears to be a
Flag formation set from the June 20 low, hinting at downward continuation from
here. Sellers are now testing through interim support at 10070, with a break of
that exposing the 10010-32 area marked by the early April top and the 61.8%
retracement. If fully realized, the Flag setup implies a measured target at
9935. The formation’s lower boundary, now at 10089, has been recast as near-term
resistance.
Dow Jones FXCM US Dollar Index - Daily Chart - Created Using FXCM Marketscope
2.0
Prices took out support at the bottom of what appears to be a
Flag formation set from the June 20 low, hinting at downward continuation from
here. Sellers are now testing through interim support at 10070, with a break of
that exposing the 10010-32 area marked by the early April top and the 61.8%
retracement. If fully realized, the Flag setup implies a measured target at
9935. The formation’s lower boundary, now at 10089, has been recast as near-term
resistance.
Dow Jones FXCM US Dollar Index - Daily Chart - Created Using FXCM Marketscope
2.0 
EUR/USD: market is in train to correct certain levels violently oversold after break-up of annually lows little less 1.2300. While our global perspective is clearly bearish, here we find yet place upside in the short term before a low high fee is requested. Locate the last positive weekly open the door for an acceleration in the region of 1.2800 - 1.3000, where new offers are likely to re-emerge. Reverse must be well supported to 1.2400.
USD/JPY: The latest setbacks have been rather intense, with the market collapsing through the 200 - Day SMA before finally finding support by 77.65. We have since seen attempts at recovery and we contend that the market should continue to break higher, with sights set ultimately on a retest and break of the 2012 highs by UST further up. However, at this point, we will need to see a break and closed back above 80.00 to officially alleviate downside pressures and reaffirm bullish outlook.
GBP/USD: Daily studies are now correcting from oversold and from here risks seem tilted to the upside to allow for a necessary short-term corrective bounce after setbacks stalled just shy of the 2012 lows from January. Look for the latest daily close back above 1.5440 to strengthen short-term bullish outlook, with acceleration projected into the 1.5800 area where a fresh lower top will be sought out in favor of underlying bear trend resumption. Only a close back under 1.5400 delays.
US DOLLAR INDEX:The market has now taken out some major resistance by 10,100 to open the door for fresh upside and a bullish continuation over the coming weeks. Next key resistance comes in by the 10,500 area, although, with daily studies now overbought, look for opportunities to buy on dips back towards 10,000 where a fresh higher low is now sought out.
USD/CAD: Our optimistic prospects for this market base has more reaffirmed in the course of the past few weeks, with the market of the acceleration of the back above parity and to 1.0500 so far. While we continue to the significant increase of the draft medium-term, short-term risks appear to be tilted to the downside so that the market can fix surachat readings on the daily chart. However, no setbacks should now be very well supported before the parity and the area of 1.0100.
EUR/USD: The market is in the process of correcting from some violently oversold levels after breaking to yearly lows just under 1.2300. While our overall outlook remains grossly bearish, from here we still see room for short-term upside before a lower top is sought out fresh. Look for the latest positive weekly close to open the door for acceleration into the 1 2800 - 1 3000 area, where fresh offers are likely to re-emerge. Setbacks should be well supported ahead of 1.2400.
Household consumption increased 0.1% in April, with nine of the 13 major categories advancing, while a separate report showed consumer prices growing at an annualized pace of 2.3% during the same period to mark the slowest pace of growth since February 2011. Although the initial reaction was fairly muted, the slipped below 1.2800 as market participants scaled back their appetite for risk, and we saw even the track lower throughout the North American trade as it ended the day at 1.2728.
USD/CAD: our optimistic prospects for this market base was reiterated more over the past two weeks, with the market acceleration back above parity and to 1.0500 so far. While we continue to the significant increase of the draft medium-term, short-term risks appear to be tilted to the downside so that the market can fix surachat readings on the daily chart. However, no setbacks should now be very well supported before the parity and the area of 1.0100.
