Dollar Index (DXH7)
The DX opened lower at 84.70 and retraced to a morning Lo of 84.56 as pressure from most other major currencies saw traders taking profit/risk off the table ahead after the Trade Deficit increased to $61.18B from $59.5B. With Fed Chrm. Bernanke speaking in front of the Senate Wednesday, traders are not looking for any surprises. Higher energy prices could inflate the 'inflation gorilla' sitting in the front row, but I doubt if anyone will pay attention. The close below the 9-day MA changes the s/t trend to 'negative' with weaker momentum indicators. The DX could receive support if the 'stonger economy' theme has legs. A lower open may find Support at 84.43 and 84.26, while an open above 84.72 could find Resistance at 84.89 and 85.18.

Japanese Yen (JYH7)
The JY opened higher at .8287 and rose to a morning Hi at our Weekly Pivot level of .8297, as Consumer Confidence improves along with the Nikkei 225 Index. Short-covering by carry-traders concerned by the 'warning' from G-7 officials about 'placing bets favoring one side' and a possible favorable report on Q4 GDP on Feb.15.could add to upside pressure. Prices retraced to a morning Lo at our secondary Resistance level of .8275 and rebounded towards the close to end the session at .8290, up 46 tics. The s/t trend remains 'negative' along with 'weak' momentum indicators. A lower open may find Support at ..8278 and .8265, while an open above .8287 should find Resistance at .8300 and .8309.

Euro Currency (ECH7)
The EC opened higher at 1.3041 as an increase in EZ Industrial Production and a favorable German ZEW Economic Sentiment report support the proposed rate increase by the ECB. Prices rose to a morning Hi of 1.3065, before drifting to a morning Lo of 1.3028. The EC bounced higher into the afternoon session and ended the day at 1.3052, up 70 tics. Traders may be anticipating more than the 3.75% level, some favoring 4.00%. I'm sure 'exporters' will express their concerns, especially if the JY doesn't raise rates at the next meeting. A close above the 9-day MA changes the s/t trend to 'positive' along with 'firmer' momentum indicators. A higher open should find Resistance at 1.3069 and 1.3087, while an open below 1.3049 may find Support at 1.3031 and 1.3011.

Canadian Dollar (CDH7)
The CD opened higher at .8544 and rose to a morning Hi of .8574, after a better than expected increase in the Trade Surplus to C$ 4.98B from a revised C$ 4.72B. As oil prices approached the $60.00 level, shorts took profit/risk off the table, hitting 'stops' along the way. Prices rose to a daily Hi at our Weekly initial Resistance level of .8583, before closing at .8581, up 68 tics. Will the IEA report increasing daily world oil usage carry oil prices higher? If not, the CD could take a hit on the DOE inventory data. The s/t trend remains 'positive' with 'improving' momentum indicators. A higher open should find Resistance at .8595 and .8608, while an open below .8569 may find Support at .8556 and .8530.

British Pound (BPH7)
The BP opened lower at 1.9432 and rose to a morning Hi of 1.9462 on DX weakness. Prices retraced to a morning Lo at our secondary Support level of 1.9417 on a lower than expected CPI report and a decline in mortgage lending, before rebounding to 1.9450 as we enter the afternoon session. The BP added a few tics towards the close to end the session at 1.9456, down 13 tics. The EC is in favor and we will see it can regain lost ground in the 'Yield Game' vs the BP. The s/t trend remains 'negative' along with weak momentum indicators. A higher open should find Resistance at 1.9473 and 1.9490, while an open below 1.9445 may find Support at 1.9428 and 1.9400.