It was a quiet New York session that lacked any real meaningful economic data coming to market. The dollar remained firm along with the carry crosses that are anywhere from one-quarter to a half-percent stronger from the Sunday night open. The US 10-year rate is being forced lower (under seemingly heavy protest) to close the series of June up-gaps. Once filled, we would expect to see the markets retest the 5.25% level. Equities closed slightly negative on the day, but a quick look at the charts shows only consolidation just below significant resistance levels that could be taken out in an instance.

We will be looking to position in long-dollar trades at high-probability support levels. EUR/USD shows a nice 3-level resistance zone below 1.3450. I have orders out of get short at 38 with 65 stops.



USD/JPY is also showing nice channel, 4th wave support at 123.10 that could be used for long entries targeting Fib target zone of 124.30. I suspect the bottom of this on-going 4th wave might be difficult to nail down, so it might take a couple of attempts. I will place stops just below 122.80 for tonight.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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