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Forex Swing Point Unfolds- As Expected

Excerpts from The Trader Advantage Program

Forex traders are witnessing a short-squeeze on Eur/Usd that is forcing bids higher due to the positions caught on the short side of 1.2100 having to get aligned in the near-term.
The initial moves higher were just as the trade team had published over the weekend and overnight; the global equity markets are being forced into month-end, quarter-end, and half-year book balancing in preparation of Mutual Fund and Earnings Season reporting. Higher equities, for whatever reason instigates it, liquidates long-Usd positions as the move is made to risk from the safety of Usd-based Treasury notes.

The S/P has crashed through 1105 resistance, and if the Japanese Nikkei can break 10,000 and the German Dax can hold 6150 support, the dollar index will find it hard to break back above 87.00, which is a support-turned-resistance area of note for dollar bulls.

The European close and mid-day Wall Street session has created an automated move higher on the major pairs against the dollar, which we would expect to retrace ahead of the Asian session moves. However, any retracement that buys the Usd will need to be banked early, and locked in tight; this short-Usd move has legs if equities hold higher. 
 
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