EUR/USD Pushing 1.5000 As NY Enters The US Dollar Selling Party

The talk over the weekend was that the G20 did not mention the dollar from their communique this weekend. Also, the IMF reported that the dollar was being used as the funding currency for carry trades. On a carry trade, participants buy higher yielding currencies and sell the lower yielding currency - in this case the US dollar.  This is keeping pressure on the US dollar.

The high for the day extended up to the 1.5011.  The low was down at the 1.4853. Friday’s market closed at 1.4845.  The sharp rise held the 100 bar moving average after the initial correction early in the day and has maintained a comfortable distance for the rest of the day so far.  This moving average will be used as support today.  The current level is 1.4967 (and moving higher).  Look for support at this level. Additional support comes in at the 1.4935/43 level which is the 38.2% of the most recent low on Friday to the high at 1.5011 and an initial high/consolidation area.

On the topside, the highs from October 23rd and 26th came in at 1.5060 and 1.5062 respectively. These levels are where the target resitance will be found on rallies above the 1.5000 level.

With the price up so strongly and the psychological 1.5000 level being the end point,  there should be some slowing/profit taking.  Watch support, however. If the support levels can hold, it could lead to a spring board to the upside later today.

In intermarket activity, oil is up $0.84 cents. S& P futures are up 10 and Dow Futures are up 89 points.  Finally, Gold is also up $13.  All of which helps contribute to the lower dollar as well today.  Further gains in each today should keep the pair supported.

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