Euro / Aussie Offers Clues into Risk Trends

Elliott wave patterns are often most clear near their terminus.

Elliott wave patterns are often most clear near their terminus.

The Dow Jones FXCM Dollar Index (Ticker: USDollar ) was markedly higher at the close of trade in New York as it approaches key technical resistance ahead of crucial data tomorrow and Friday.

NEW YORK: The US dollar rose against the euro on Wednesday in light trade ahead of the release of key figures on the US economy that could define the picture confronting policy makers for the next quarter.

A new month brings new opportunities. Near term, expect moves in both directions in the AUDUSD and NZDUSD (down then up). The same can be said for the CHF crosses

Signs of tightening supplies offset by stronger US dollar. 1 Sep 2011 7:37 AM

Though fundamental troubles are more engrained and volatility still exceptionally high; the US dollar is facing an uneasy period of congestion over the coming weeks. The possibility of QE3 (or something like it) in a few weeks time is effective enough to stall the dollar and background speculative drives.

THE dollar is higher today, after Wall Street gained ground overnight on better than expected US manufacturing data.

TORONTO – The Canadian dollar closed at 102.10 cents US on Wednesday, down 0.13 of a cent from Tuesday’s close.

Michael Boutros, DailyFX Currency Strategist, hosts a live scalping session in the DailyFX Live Trading Room on August 31, 2011 at 14:00 GMT. Watch this recorded session and check the Live Trading Room for an updated schedule of live broadcasts.

The greenback held a narrow range on Wednesday and the reserve currency may continue to consolidate in the days ahead as the economic docket is expected to reinforce a weakened outlook for future growth.