A reading below 20% would signal a strong bearish setup and would represent a successful completion of “buy the dollar” headline campaign.
The secular down trend will resume once funds and retail traders have been concentrated on the long side. A turn in the dollar will terminate a reciprocal operation currently underway in precious metals.
U.S. Dollar Index and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest
Headline: ASIA FX: US Dollar Gains, Risk Sentiment Hit by Greek Worries
The U.S. dollar ended the Asian session stronger Monday, as the foreign exchange market started the week off with a fresh wave of risk aversion and the euro fell victim to worries about Greek debt problems.
The Greek Parliament is due to discuss its austerity program, the Medium Term Plan, June 27-28 and Parliament will vote on the implementation law June 29, with the voting process starting the afternoon of the 29th and expected to be completed in the morning of June 30.
Dealers said ahead of the vote worries remained that Prime Minister George Papandreou may not be able to push through the plan, or that problems would persist even after Greece receives the next installment of the International Monetary Fund/EU loan in mid-July.
The euro started the morning with a weak tone, falling below $1.4200 early in the day, after an initial high of $1.4224. The pair then slid through rumored buy orders and fell to a session low of $1.4103 in the mid-morning here.
Source: imarketnews.com
