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Dollar Range
Wednesday, August 04, 2010
by Patrick Vahid of Sonic Futures & Options
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We had a nice rally in the dollar today and it came from both holding psychological support at 80 as well as ISM Non-Manufacturing PMI. The report came out above 50 which indicates industry expansion and it's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. Also, a key note that supported the other reports was employment numbers increasing to 42,000 which was 4,000 higher than anticipated. With the dollar taking a 10% drawdown in the past two months, it would be fair to assume that a small correction is in order. The euro which moves inversely to the dollar also showed a little weakness today, and is still unclear whether the 500 point correction I had previously expected has begun. Key levels of resistance in that market are at the 1.3240 level which was slightly broken, but not enough strength was shown to alter my sentiment. Patrick Vahid Senior Trading Analyst 877-327-7346 x231 www.SonicFutures.com Request a free $50k demo account and trade alongside me each day. *There is a risk of substantial loss trading futures. Past performance is not necessarily indicative of future results.
Recent articles from this author
- How Bad is Our Economy - Wednesday, August 25, 2010
- LIVE CATTLE SUPPLY SYNOPSIS - Friday, August 13, 2010
- Euro Currency, E-Mini S&P, Live Cattle - Thursday, August 12, 2010
- Dollar Range - Wednesday, August 04, 2010
- Wheat Outlook - Thursday, July 29, 2010
About the author
Patrick Vahid is the market strategist at Sonic Futures & Options. Attending California State Polytechnic University, Pomona he majored in Civil Engineering and traded the stock market throughout high school, as well as college. After school, he became the senior engineer of a well established engineering firm, based out of Orange County California. Soon after, his passion for the markets out weighed the successful engineering career he had established and began his new endeavor as a trader at Sonic Futures & Options. After developing a steady base of clients who he worked with one on one, he became the senior market strategist at Sonic Futures, and focused mainly on short term trades that would adhere to his own personal proprietary trading strategies. He is known for being a young up and coming trader and is often known for his saying "taking risks and being risky are two very different things." He prides himself on managing risk, and focus primarily still on the oil market. He does follow seasonal trading in the grains, and delves into currency trading; however, his primary focus has always been the energies. Patrick can be reached at 800-341-7350 or Patrick@SonicFutures.com
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