Rate falls into stops layered close in and accelerates on thinner volumes. Low prints from active selling at 1.4570; rate makes a six-month low and traders report profit-taking bids.

Although rate is off the highs it is holding firm against the USD. If oil retreats expect a pullback but that is a buying opp in my view. Stops in the 1.4750 area cleared on the way lower but holding above there suggests a "buy the dip" mentality; next level is still above the 1.4900 handle most likely. Support solid in my view at 1.4700 area now; grind in two-way action is good but we want higher volumes on rallies to form this bottom.

After all of today's action the rate ends about where it started this morning after making highs later in the day. Rate falls to a new low overnight but volumes are thin due to the holiday; likely an exhaustion dip and the rate will recover soon.

Hook Reversal on the day, look for a bottom the next 48 hours. OK to stand aside but I want to wait just a bit before buying. EURO holding firmer despite a lower open. So far suggesting GBP is overextended. Rumors of a Lehman Brother's bailout from a Korean source may be blowing over. Close above the 1.8580 area argues for further gains; aggressive traders can buy the close but again I would wait just a bit. Stop-driven break is likely a head fake in my view.

The USD is weaker against the majors to end New York after starting a bit better overnight Asia. Traders note that volumes were thin overnight and most of the day but once the USD began to move lower after the London fix the volumes increased a bit. The lack of economic news certainly helped with the thinner conditions and today's Housing Data was no help for the USD bulls even though sales were better-than-expected; after an initial brief rally the USD fell to lows on the day after the release of the news.