Dollar Reversal - Blue Line FX Rundown
FX Rundown

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Euro (December)

Session close:Settled at 1.1560, up 8.5 ticks

Fundamentals:The Euro fell this morning at 1:00 am CT after German Imports and Exports both came in lower than expected. Pressure was again added by the budget standoff between Italy and Brussels. However, sentiment began to turn after 7:00 am CT when Dallas Fed President Kaplan spoke. Although he supported the expectation of three more quarterly hikes by June, he did remind investors that the yield curve has been flattening for the last several months and this is a signal that slower growth is ahead. His comments seemed to put a floor in the Euro just as it traded to a session low of 1.14935, the lowest since August 17th. Chicago Fed President Evans did not make comments on policy, but he speaks again tomorrow at 11:15 am CT. Traders want to keep an eye on U.K GDP, Industrial Production and Manufacturing Production all at 3:30 am CT tomorrow. This could really set a tone for the currency market versus the Dollar with the international trade conflict on investors minds. From the U.S PPI is due at 7:30 am CT and a 3-year and 10-year Note auctions at noon.

Technicals:We have been cautious the Euro and went Neutral in Bias after it slipped below the 1.16125 level last week. Although it was encouraging to see price action hold support at 1.1524, we remained Neutral last night. Today brought he much needed flush and recovery that has reinvigorated a bit of our Bullish Bias. We expect price action to test what is now major three-star support at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Yen (December)

Session close:Settled at .88905, down 3 ticks

Fundamentals:The Yen consolidated near the highs of yesterdays jump. The Nikkei was down more than 1% overnight which kept a bid under the Yen, however, it pared losses in U.S hours but the Yen remained stable as Treasury prices rose. Last night, Current Account data came in light, but Economy Watchers Index came in stronger than expected. Traders want to keep an eye on equity markets and if they slip further, the Yen is looking to extend gains as the U.S Dollar softened through todays session. Machinery Orders are due at 6:50 pm CT.

Technicals:Price action remains firm but faces strong overhead resistance at ....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Aussie (December)

Session close:Settled at .7105, up 22 ticks

Fundamentals:The Aussie moved higher early last night after NAB Business Confidence beat expectations but followed equity markets around the globe lower into this morning. Things stabilized at the onset of U.S hours and the Dollar softened; a perfect stew for the Aussie to gain half a penny from the session low into the electronic close. The tape is stable and seems to want to pick itself out of the gutter. Westpac Consumer Sentiment is due at 6:30 pm CT.

Technicals:In yesterdays report, we introduced a minor Bullish Bias as we felt and still feel the Aussie is primed to recovery. Still, it faces major three-star resistance at ....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Canadian (December)

Session close:Settled at .77355, up 10 ticks

Fundamentals:The Canadian turned a corner when at 7:00 am CT, just as we described for the other currencies against the Dollar. The comments from Dallas Fed President Kaplan and the onset of a risk-on sentiment as U.S hours approached lifted the Canadian because it sure was not the miss on Housing Starts for September or the revision lower for August. Crude Oil also provided a tailwind in the 0.5% rally from session lows as Hurricane fears added a premium. Tomorrow, Building Permits are due at 7:30 am CT.

Technicals:Price action responded against major three-star support once again and this allowed the bulls to take the reins on the session. It is not ironic that the Canadian settled right at our pivot level, this is simply the beauty of technicals. The ground work is now laid, and the line is in the sand. We are upping our Bullish Bias, but traders must be out below ....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.