Good Afternoon,
Fundamentals first. ISM came in just above expectations, but the employment component came in below expectations. New orders were flat. Remember wny I am am focusing on the employment component - only 4 days away to another dismal jobs report.
Bernanke also spoke today. He defended the Fed's "no inflation anywhere" campaign. Go ahead and tell someone living off of fixed income that there isn't any inflation. Again, this is the "focus on yield" and how older people who should be getting income from bonds are going to continue to be forced into the equity market. Then, what if the equity markets slips. On the other hand, if they leave bonds for equities and the equity markets rally, they should hug their investment advisor.
Technically, the SPX Fibonacci and trendline trade came together today:
Past performance is not indicative of future results
So with a reversal in equities, you would expect a reversal in the USD from weak to strong. We got it in the NZD/USD:

Past performance is not indicative of future results
But what about the EUR/USD - given the SPX giving back 12 points, the EUR stayed strong and held onto its gains:

Past performance is not indicative of future results
Are we going into a tighter 1433-1465 range in SPX? What will get us to go through lows or through highs? Maybe unemployment Friday...
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.