Daily Commentary for June 20th, 2006

Good Monday Evening/Tuesday Morning,

Boring!!!
The absence of any major economic news rendered the currency market pretty tame today. There is going to be some key US housing numbers along with unemployment data later this week, but that is essentially it. Obviously, all eyes seem to be on the US Fed next week in regards to the decision on interest rates. Crude oil dropped near a dollar to right around $69.00 in trading. Overall, it was a good day to leave work early to go watch Spain beat up on Tunisia.

Technical Analysis
As usual, we don’t utilize technical analysis in our strategy design, but feel it is necessary to inform our clients on certain key levels.
Eur/Usd
On a weekly basis it seems to be still mired in the head and shoulders pattern. Look carefully at the trades in the .2500 range if that area is tested again. Most likely some more consolidation before picking a direction
Usd/Jpy
On a daily chart, look for the 116 area to produce some resistance. It will be interesting to see if a quick reversal occurs or some much needed consolidation
Usd/Chf
Look for support at 1.2300, and resistance in the 1.2470 range. A nice little trading range should be present for some good short term trades.

What Our Strategies Are Telling Us
The 4 strategies contained in our Strategy Suite 1, are split down the middle in terms of dollar biased. All of our strategies are algorithm-based and look for different factors in determining buy/sell.
Yen Optimizer-short since 114.60-.80
Euro Mega-short since .2640-.2460
Swiss XL-Long since .2320-.2340
Euro Tiburon- Long since .2640-.2660

Our individual strategies are showing a mixed bag as well:
G5 Euro-Long since .2570-.2590
Extreme Euro-Short since .2590-.2610
Euro Ace-Long since .2640-.2660
And our two newest yen strategies are currently flat.

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Thank You,
T2