Daily Commentary for June 21st, 2006

Good Tuesday Evening/Wednesday Morning,

New Home Surprise
The US economy received some welcomed surprising news with stronger than expected rise in new home construction. This news fuels the optimism that even though you need to take out a loan to fuel your Jeep Cherokee, and you’re going to pay an ever increasing rate to borrow that money, that somehow the US economy is in good shape. A barrel of oil is going to cost around 68.64, down a few cents from yesterday’s close. The smart money is suggesting there is some stability being exhibited in the energy market. As I noted in my commentary last evening, common sense would indicate that the market is holding their collective breath waiting for the decision on interest rates next week.

Technical Indicators
Eur/Usd
This cross behaved like a rubber band today, dropping as low as .2537, and as high as .2617 before coming back to rest near the starting point of the day at .2580. Support is still seen around .2530, and resistance around .2650
Usd/Jpy
This cross never really recovered from a near 80 pip drop in the early morning hours, before settling in the 114.90 range. Look for near term resistance at 116, and support near 114. There should be a nice 200 pip trading range from which to make some nice trades.
Usd/Chf
The dollar weakened against the Swiss franc, as well, dropping to an inter-session low of .2343. Resistance is shown around .2490, and support is around .2325.

What Our Strategies Are Telling Us as of 6/20, 10PM ET:
Strategy Suite 1
Yen Optimizer-$ Short
Euro Mega- $ Long
Swiss XL- $ Long
Euro Tiburon-$ Short
Individual Strategies
G5 Euro- $ Short
Extreme Euro-$ Long
Euro Speed- Flat
Euro Ace- $ Short
Vital Yen- $ Long
The Notorious Yen- $ Long

Thank You for your continued support, and keep track of our progress on fxstreet.com Signal Tracker, along with the equity charts on our website.

T2
www.tsquaredtrading.com