As the stock market sells off, the USD gains strength as traders look for relative safety in times of uncertainty. Yesterday's USD rally was strong as traders seem to be of the opinion that the US stock market is vulnerable to more selling pressure. So we want to keep an eye on the 1054.60 support level as a move down through that low could open the door for a test of the 1008.00 low and the 1000 level. Although that would only represent a low for 2010, the implications could be felt very strongly in the FX markets as the USD could experience a sustained rally resulting in a major trend change on USD based pairs.
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