The U.S. dollar continues to remain under pressure as the U.S. dollar index trades below the 80 level to 79.68 in anticipation of the Federal Reserve will begin its third round of monetary easing (QE3). Market participants are focusing on tomorrow’s statement from the FMOC scheduled for 12:30 a.m. ET.

The Euro against the Dollar (EUR/USD) continues to move even higher late in the U.S. session for the second day in a row.

The EUR/USD broke above and closed the 150 day moving in yesterday’s session with a continuation move higher now above the 200 day moving average, approaching the downward Fibonacci wave’s 38.2% retracement level.

Our fuel gauge (blue dotted line) has just become to show signs of running out steam suggesting the move could be slowing going into the FMOC decision tomorrow.

Helping to push the Euro higher was the Germany’s high court decision to allow the ESM to begin the proposed bond buying program in hopes to stimulate economic growth within the euro zone.

Bottom Line:  We are waiting until we get closer to the FMOC decision before putting a trade on in the EUR/USD.  We will be looking at running a scalping trade on the pair to catch the knee jerk reaction from the statement release of the Federal Reserve Chairman, Mr. Bernanke.

Looking at the FXE our scans indicate no real unusual activity with the largest option sale occurring early in trading at 10:47:49 a.m. ET for 609 contracts of the  JAN 13 120 PUT options.

However, late in the session the UUP did show unusual activity in that 2,388 OCT 12 21 CALL options were purchased by a single trader at  14:24:59 a.m. ET on the higher end of the spread.

The U.S. dollar continues to remain under pressure as the U.S. dollar index trades below the 80 level to 79.68 in anticipation of the Federal Reserve will begin its third round of monetary easing (QE3). Market participants are focusing on tomorrow’s statement from the FMOC scheduled for 12:30 a.m. ET.

The Euro against the Dollar (EUR/USD) continues to move even higher late in the U.S. session for the second day in a row. 

The EUR/USD broke above and closed the 150 day moving in yesterday’s session with a continuation move higher now above the 200 day moving average, approaching the downward Fibonacci wave’s 38.2% retracement level.  

Our fuel gauge (blue dotted line) has just become to show signs of running out steam suggesting the move could be slowing going into the FMOC decision tomorrow.

 Helping to push the Euro higher was the Germany’s high court decision to allow the ESM to begin the proposed bond buying program in hopes to stimulate economic growth within the euro zone.

Bottom Line:  We are waiting until we get closer to the FMOC decision before putting a trade on in the EUR/USD.  We will be looking at running a scalping trade on the pair to catch the knee jerk reaction from the statement release of the Federal Reserve Chairman, Mr. Bernanke.

Looking at the FXE our scans indicate no real unusual activity with the largest option sale occurring early in trading at 10:47:49 a.m. ET for 609 contracts of the  JAN 13 120 PUT options.

However, late in the session the UUP did show unusual activity in that 2,388 OCT 12 21 CALL options were purchased by a single trader at  14:24:59 a.m. ET on the higher end of the spread.