The USD continued to correct higher trough today's New York trade reaching the best levels of the day against the majors shortly after the London fix; despite the rise in the Greenback the majors held important S/R levels during the day and remains in two-way action into the close. Technical trade was the rule for the most part as the lack of economic news kept traders focused on near-time price levels with stops helping to drive most of the intraday action.

As expecting the USD/JPY is launching after finally eclipsing February highs and consequently the highly psychological 100 level. Putting the 100 area behind the USD/JPY is a huge step psychologically, and could proceed to yield a strong leg up in the near-term.

All the USD/JPY needs to do is make a follow-through and push past our next two downtrend lines. If this happens, there are no foreseeable downtrend lines remaining, and the currency pair can march on to huge gains.

The bears are finally giving into the bulls after last week's data from Japan showed the Japanese economy is weakening considerably as compared to America's economy.

The Cable is on fire, continuing its rapid ascent towards the highly psychological 1.50 area. The Pound is outperforming as Britain's economic data continues to beat analyst expectations.

Both Britain's Manufacturing and Services PMI data points showed improvement last week. While America and the EUs' economic data points are coming in mixed, Britain's data is stabilizing on all critical economic fronts.

As a result, the GBP/USD is surging while the EUR/GBP drops into a downtrend. In the process, the Cable has broken through all foreseeable downtrend lines, and it appears as if this could be the second leg of a lasting uptrend.

The EUR/USD popped from the inflection point of our 1st tier downtrend line and 2nd tier uptrend line on Friday as U. S. equities continued their upward momentum. Indicators all around are pointing towards an economic recovery, the EUR/USD included.

The currency pair is following its positive correlation with the S&P futures, representing an investor return to risk. However, the EUR/USD still has several fundamental obstacles to the upside as compared to the GBP/USD.

The relative strength of the Pound is also reflected in the downward pressure present in the EUR/GBP. First, the EUR/USD must brave through the thick of the March trading zone and 2009 highs, not to mention several foreseeable downtrend lines.

Crude futures are falling sharply Monday morning after being deflected from the inflection point of our 2nd tier uptrend and downtrend lines. The weakness in Crude follows a decline in the S&P futures after IBM's acquisition of Sun Microsystems appears to have fallen through.

The failed purchase of Sun raises a red flag concerning the health of the economy, and gives investors a reason to take profits after such a large run in Crude. The selloff in Crude is a bit disappointing for bulls since the futures were so close to breaking out of key trend lines and March highs.

Gold collapsed after dipping below our previous bottom-end support and the key psychological $900/oz level. Consequently, the precious metal seems to have made a commitment to the downtrend, which is reflected in the strength of U. S. equities.

Gold is finding some support around its 1/29 lows, and could see a little rally back towards $900/oz as investors take advantage of oversold conditions.