Antipodeans setup for a breakout ,Euro crosses continue to retrace,Yen crosses remain mixed.Dollar loses more...

... ground to the commodity currencies with antipodeans setting up for
a breakout of inverted head and shoulder patterns that were setup by the recent
price action.

EUR/USD * Euro bulls went through another rollercoaster session around the 1.2100
figure as the dollar longs managed to push the pair below the 1.2100 handle once
again. As the euro traders recover from another assault by the greenback, they will
most likely take the fight to the greenback with then single currency aiming for the
offers scattered around the 1.2200 figure. Indicators signal a maturing trend with
ADX (DMI) on the daily chart at 50.02. Stochastic is treading below oversold line on
the daily chart at 13.50, which is indicative of a trending market. The Stochastic
on the dealer (4HR) chart is neutral at 58.96. RSI is treading above the oversold
line on the daily chart at 31.22 with the 4-hour chart RSI neutral at 48.06. MACD
remains deep below the zero line on the daily chart and is pointing upward below the
zero line on the dealer (4HR) chart. In case the reversal fails greenback longs will
most likely resume their advance and push the pair below the psychologically
important 1.2000 figure.

Key Levels

Level Resistance Details
1.2357 Major 78.6 Fib of 1.1992- 1.3667 Euro rally
1.2257 Intermediate June 9 daily spike high
1.2174 Minor June 1 daily spike low
Level Support Details
1.1992 Minor Aug 30 daily spike low
1.1955 Intermediate Aug 14 daily high
1.1895 Major May 20, 2004 daily spike low

USD/JPY * Japanese Yen continued its slow advance against the dollar with yen
traders making their way below the 109.00 figure. As the price action remains
subdued, dollar longs should have little problem defending the 108.00 figure ahead
of the weekend. Indicators signal trend reversal, with ADX (DMI) dropping to 25.98.
Stochastic is above the overbought line on the daily chart at 84.37 with Stochastic
on the 4-hour chart neutral at 24.37, thus providing yen bulls with a chance to
mount a counterattack. RSI is treading below the overbought line at 58.44 on the
daily chart, with dealer (4HR) chart RSI also neutral at 47.69. MACD has made a
bullish crossover above the zero line on the daily chart, while the MACD is pointing
downward above the zero line on the 4-hour chart.

Key Levels
Level Resistance Details
110.71 Major Sep 3 daily high
110.21 Intermediate Oct 13 daily spike high
109.83 Minor Sep 30 daily spike low
Level Support Details
108.23 Minor May 23 daily spike high
107.89 Intermediate 61.8 Fib of the 111.69-101.74 JPY rally
107.27 Major June 10 daily low

GBP/USD * British pound remained in an upward momentum with sterling traders
managing to approach the 1.8300 figure, but ultimately falling back toward the
1.8200 handle. As the pair remains confined in a relatively tight and volatile
range, dollar traders will most likely face the cable bids around the 1.8300 figure
once again as sterling traders aiming to retrace some of the gain made by greenback
during May-June rally. Indicators signal failing trend with ADX (DMI) falling to
34.8. The dealer (4HR) chart Stochastic is neutral at 72.56. RSI is neutral at
43.71 on the daily chart and is neutral at 57.78 on the 4-hour chart. MACD has made
a bullish crossover below the zero line on the daily chart and is pointing upward
above the zero line on the (4HR) chart. In case the cable longs fail to make a
further advance, dollar traders should expect the cable to tumble below the 1.8000
figure.

Key levels

Level Resistance Details
1.8468 Major 38.2 Fib of the May-Jun pound rally
1.8403 Intermediate June 8 daily high
1.8290 Minor 23.6 Fib of the 1.9222-1.8002 USD rally
Level Support Details
1.8157 Minor Jun 14 daily spike high
1.8074 Intermediate June 1 daily low
1.8002 Major 2005 Low

USD/CHF * Swiss Franc longs once again tested the dollar bids below the 1.2700
figure, but failed to make significant gains and retreated back above the 1.2700
figure. As both sides remain deadlocked, a move to the downside by the Swissie
traders will most likely find significant greenback bids waiting along the
psychologically important 1.2500 figure. Indicators are signaling maturing trend
with ADX (DMI) at 51.9. Stochastic on the daily chart is currently above the
overbought line at 86.52. The Stochastic on the 4-hour chart is neutral at 46.13.
RSI is treading near the overbought line on the daily chart at 69.46 and is neutral
on the (4HR) chart at 54.05. MACD remains well above the zero line on the daily
chart while it is pointing downward above the zero line on the 4-hour chart. In case
the Swissie bulls are forced to retreat by the greenback longs, dollar traders
should expect the pair to break above the 1.2800 and aim for 1.3000 figure.

Key levels

Level Resistance Details
1.2921 Major May 20, 2004 daily spike high
1.2853 Intermediate Aug 30 daily high
1.2790 Minor Sep 8 daily spike high
Level Support Details
1.2595 Minor June 9 daily spike high
1.2521 Intermediate 78.6 Fib of the Sep-Dec CHF rally
1.2446 Major June 3 daily spike low

USD/CAD * Canadian dollar remained on the sidelines following spectacular gains the
pair made during the previous session. As the Loonie traders continue to consolidate
their gains a push to the downside will most likely see significant US dollar buying
around the 1.2270 level Indicators are signaling a trendless market with ADX (DMI)
falling to 13.7. The Stochastic on the daily chart is treading above the oversold
line at 20.34. The 4-hour chart Stochastic is extremely oversold at 7.72. RSI
remains neutral at 39.83 on the daily chart while the dealer (4HR) chart RSI is
treading the oversold level at 30.44. MACD is pointing downward below the zero line
on the daily chart and is pointing downward below the zero line on the (4HR) chart.
In case the CAD traders fail to make a further advance, the price action than will
once again favor the US dollar longs with the pair retreating above the 1.2600
toward the 1.3000 figure.

Key Levels

Level Resistance Details
1.2556 Major 23.6 Fib of the 1.1972-1.2732 USD rally
1.2492 Intermediate 10-day SMA
1.2441 Minor 38.2 Fib of the Mar-May USD rally
Level Support Details
1.2302 Minor Apr 24 daily spike low
1.2262 Intermediate 61.8 Fib of the Mar-May greenback rally
1.2213 Major Apr 8 daily spike low

AUD/USD * Australian dollar managed to make its way above the .7700 figure with the
bids topping off around the .7740 level. As the Aussie traders continue to
consolidate their gains, a significant bullish pattern is currently being observed
on the daily chart in the form of inverted head and shoulders, with a break in the
neckline have potential to carry the pair above the .7850 toward the .7900 handle.
Indicators are signaling a trendless market with ADX (DMI) falling to 17.4. The
daily Stochastic is above the overbought line at 83.31 while the 4-hour Stochastic
is also above the overbought line at 89.44. RSI is neutral on the daily chart at
58.70 and on the (4HR) dealer chart , RSI is treading below the overbought level at
68.50. MACD is sloping upward slightly above the zero line on the daily chart and
pointing upward above the zero line on the 4-hour chart. In case the AUD dollar
bulls fail to make a move against the USD dollar and are forced to retreat, a move
to the downside will most likely see the pair test the .7400 figure.

Key Levels

Level Resistance Details
.7842 Major Apr 29 daily spike high
.7792 Intermediate 61.8 Fib of the .7889-.7474 USD rally
.7763 Minor May 5 daily spike low
Level Support Details
.7671 Minor 38.2 Fib of the Mar-May greenback rally
.7638 Intermediate June 8 daily spike low
.7595 Major 23.6 Fib of the Mar-May greenback rally

NZD/USD * New Zealand traders are facing an interesting situation as with its
antipodean neighbor, the price action in the Kiwi left an inverted head and
shoulders pattern on the daily chart which signifies a bullish technical setup. A
break in the neckline will most likely see the pair scream past .7200 figure and
touch the .7250 level. A failure of such a strong technical setup will most likely
herald the end of NZD strength and a beginning of a long trend down toward the 2000
lows.. Indicators point to a trendless market with ADX (DMI) falling to 17.17. The
daily Stochastic is moving below the overbought line at 70.75 with the 4-hour chart
Stochastic also treading below the overbought line at 75.34. RSI is neutral at 51.57
on the daily chart as well as on the (4HR) dealer chart at 58.73. MACD has made a
bullish crossover below the zero line on the daily chart while the MACD on the (4HR)
chart is treading slightly above the zero line. In case the NZD bulls fail to breach
the .7200 figure and fall back, the next level they will most likely find some
support will be .6950.

Key Levels

Level Resistance Details
.7251 Major May 10 daily spike low
.7214 Intermediate 61.8 Fib of the .7377-.6950 USD rally
.7163 Minor 50.0 Fib of the .7377-.6950 USD rally
Level Support Details
.7050 Minor 23.6 Fib of the May-Jun USD rally
.7010 Intermediate Apr 5 daily low
.6977 Major June 3 daily spike low


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