Monday’s Forex Levels And Commentary

Dollar Index:


Dollar has bottomed out at a fib level we
mentioned last night (88.30) but we expect this to be short lived and would
look to sell into any moves towards 88.50-60. Our short term target is 88.08.




A bit extended to the upside at current levels
(1.8295) but we will be keen to buy pull-backs towards the 1.8275 & 1.8255
level. We see further upside targets towards 1.8320 and 1.8360




Looks like base metal prices are driving AUD more
than the current levels of the dollar index. However, as long as the dollar
remains under pressure we will maintain a neutral stance until prices develop
further. We expect base metal prices to bounce from oversold levels which
should allow for some upside levels to be achieved on AUD.




We are a bit more constructive on NZD versus AUD,
but we still see little upside potential for the time being. A solid push
through .7085 would ignite some upside momentum.




USD/NOK has begun to trade a bit more actively
again after a disconnect from the dollar at the beginning of last week. Like
the GBP, we are looking for entries on this pair as well, and will look to
short into the 6.5385 and/or the 6.5540 area. We expect to see a test of
6.4960-6.5000 as a price target.

As always, feel free to send me your comments
and questions.