Market Analysis SRO -3.05

The USD have manage to gain grounds overall in spite of the mix reports especially coming from the weaker than expected ISM figures, Fed Chairman Ben Bernanke's testimony and some renewed interest after Gold plunged to its lowest price for the opening for the new month of March.

Position adjustments have gained pace as the USD rallied to its 79.50 basis point resistance level after easily penetrating the 78.85 within the closing day of Friday's trading. This however, was expected on the technical side after the USDx have touched its objective at the 78.09 support and finally supported the rally with some good reports from the market.

With that said, the USD would have to continue and close for this week above the range of 79.50-80.05 levels to have a healthier confirmation that the higher bottom for the USDx have been established. Although, it already looks to be the case, yet the the rapid increase and volatility it provided were simply to fast and attained it within a two day trading period. A gradual increase higher would make it steadier and not susceptible to run out of steam after profit taking activities at the closing of Friday the 2 of March. The Commitment of Traders Report (COT) would provide a clearer perspective in actual figures that would include the VOI for the USDx alongside the financial futures. Anticipating some renewed interest may prove the rally to be stronger both on the fundamental and well supported by the technical indicators. Although, any price above the the USDx closing for the week of March 09 would be actual signal to be watching for.

The day-to-day activity would be limited to the trading range below the resistance of 79.50  with some probable extensions nearing the 80.00 basis point. This would have a wider effect on price fluctuation on both directions for the majors likewise the cross rates during the first three days of the opening trade.
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