U.S. DOLLAR INDEX (DXM6)
The DX opened lower at 87.53 and rebounded to a morning Hi at 88.19, after stronger than expected Jobs data and bullish comments from San Fransisco Fed member Janet Yellen.Weaker energy prices supported the move, but the DX slid to 87.93 as we head into the afternoon session. Prices continued to trade at our initial Resistance level of 87.94 for most of the afternoon, before ending the day at 87.96, 46 tics. The s/t trend remains 'negative' and momentum indicators remain 'over-sold', as the short-covering rally will need follow-thru buying to overcome the negative sentiment. If Chinese President Hu Jintao follows through on his pledge of more 'flexibility' in the Yuan, it could pressure the DX lower. We shall see.
A higher open should find Resistance at 88.25 and 88.54, while an open below 87.90 may find Support at 87.61 and 87.26.

 
CANADIAN DOLLAR (CDM6)
The CD opened lower at .8811 and rose to a morning Hi of .8818, before pressure from a stronger DX and profit-taking in the metals and energy sector sent the CD to a morning Lo of .8767, before rebounding to .8790 as we begin the afternoon session. Prices traded around the initial Support level of .8786 through to a close of .8791, down 28 tics. Trend remains positive, but susciptible to energy and metal profit-taking. Momentum indicators continue to turn lower, suggesting a 'topping' formation. Longs should tighten 'stops' or purchase a 'put' to reduce exposure. A lower open may find Support at .8766 and .8741, while an open above .8792 should find Resistance at .8817 and .8843.

 
BRITISH POUND (BPM6)
The BP opened lower at 1.7853, bounced to a morning Hi of 1.7857 and followed most other major foreign currencies lower to a morning Lo of 1.7770 as the DX recovered. Prices bounced to 1.7811 as we begin the afternoon session. The BP slid lower towards the close and ended the session at 1.7800, down 136 tics. The s/t trend remain 'positive', but weaker momentum indicators suggest a 'topping' formation and possibly lower prices. Longs should tighten 'stops' or purchase a 'put' to reduce exposure. A lower open may find Support at 1.7761 and 1.7722, while an open above 1.7809 should find Resistance at 1.7848 and 1.7896.

 
EURO-CURRENCY (ECM6)
The EC opened lower at 1.2391, jumped to a morning Hi of 1.2397 and retraced to a morning Lo of 1.2334 as the DX rallied on the prospect of two further rate increases. Prices rebounded to1.2368 as we head into the afternoon session.

 
JAPANESE YEN (JYM6)
The JY opened lower at .8566 and slid to a morning Lo at our initial Support level of .8555.