U.S. Market January 25, 2001

Renewed belief in a strong USD sent EURUSD tumbling during the New York morning when stop loss orders around the 0.9260 – 0.9270 level were executed and sent it down as low as 0.9216 before bouncing back to retest 0.9270 on the upside but failed and spent rest of the day on the defense sliding down to retest the daily lows. The last week’s consolidation on Wall Street combined with at least a temporary technical failure for the Euro crosses on the upside, are some factors behind the Euro struggle. USDCHF opened at 1.6475 and subsequently rallied to a daily high of 1.6600 where some profit taking emerged but it remained well bid throughout the day closing slightly below the high. GBPUSD saw an early sell off from 1.4650 to 1.4560 on general USD demand, and later on resumed its slide to 1.4530. USDJPY took an early morning nosedive in New York when falling from 118.05 to 117.50 in one quick move as a White House spokesman denied a supposed earlier comment that the new administration is happy with USDJPY at 120.00. General USD buying however, resulted in a rally from 117.50 to a daily high of 118.44, before renewed EURJPY cross selling took the cross below 109.00, and made USDJPY close at 117.80. Along with the Euro, AUDUSD and NZDUSD were attacked as well. AUDUSD broke support at 0.5500 and quickly sold off to 0.5430 from where it never recovered. NZDUSD opened at 0.4440 and fell to 0.4370 where good support was seen.

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