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.
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.
