CURRENCIES Commentary

The September Dollar was higher due to short covering overnight as it consolidates some of Wednesday's decline but remains below the lower boundary of this summer's trading range crossing at 78.83. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If September extends the decline, the 75% retracement level of the 2008-2009-rally crossing at 75.73 is the next downside target. Closes above last Wednesday's high crossing at 79.77 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 78.57. Second resistance is the 20-day moving average crossing at 79.04. First support is Wednesday's low crossing at 77.52. Second support is the 75% retracement level of the 2008-2009-rally crossing at 75.73.

The September Euro was slightly lower overnight due to light profit taking as it consolidates below the 62% retracement level of the 2008-2009-decline crossing at 144.429. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If September extends Monday's rally, the 75% retracement level of the 2008-2009- decline crossing at 148.680 is the next upside target. Closes below last Wednesday's low crossing at 140.070 would confirm that a top has been posted. First resistance is Wednesday's high crossing at 144.490. Second resistance is the 75% retracement level crossing at 148.680. First support is the 10-day moving average crossing at 142.596. Second support is the 20-day moving average crossing at 141.860.

The September British Pound was sharply lower due to profit taking overnight as it consolidates some of this week's rally but remains above trading above broken trading range resistance marked by June's high crossing at 1.6742. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. However, closes below last Thursday's low crossing at 1.6339 are needed to confirm that a short-term top has been posted. If September extends this week's rally, the 62% retracement level of the 2008-2009-decline crossing at 1.7226 is the next upside target. First resistance is Wednesday's high crossing at 1.7043. Second resistance is the 62% retracement level crossing at 1.7226. First support is the 10-day moving average crossing at 1.6661. Second support is the 20-day moving average crossing at 1.6523.

The September Swiss Franc was lower due to light profit taking overnight as it consolidates some of Monday's rally. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above trading range resistance crossing at .9449 are needed to confirm an upside breakout of this summer's trading range. Closes below last Thursday's low crossing at .9149 would confirm that a short-term top has been posted. First resistance is Monday's high crossing at .9471. Second resistance is the 75% retracement level of the 2008-2009-decline crossing at .9590. First support is the 10-day moving average crossing at .9346. Second support is the 20-day moving average crossing at .9325.

The September Canadian Dollar was lower due to profit taking overnight as it consolidates some of this week's rally. Stochastics and the RSI are overbought, diverging and are turning bearish signaling that a short-term top might be in or is near. However, closes below the 20-day moving average crossing at 91.05 are needed to confirm that a top has been posted. If September extends this month's rally, the 75% retracement level of the 2008-2009-decline crossing at 95.30 is the next upside target. First resistance is Tuesday's high crossing at 94.08. Second resistance is the 75% retracement level crossing at 95.30. First support is the 10-day moving average crossing at 92.73. Second support is the 20-day moving average crossing at 91.05.

The September Japanese Yen was lower overnight as it extends the trading range of the past two weeks. Stochastics and the RSI are oversold and are turning neutral to bullish signaling that a short-term low might be in or is near. Closes above the reaction high crossing at .10640 are needed to confirm that a short-term low has been posted. If September extends the decline off July's high, the reaction low crossing at .10320 is the next downside target. First resistance is the 20-day moving average crossing at .10597. Second resistance is the reaction high crossing at .10640. First support is last Thursday's low crossing at .10432. Second support is the reaction low crossing at .10320.