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.

Cable rallied to a high print at 1.8592 making for a large range on the day and creating a hook reversal but gave back some of those gains to end near the 1.8520 area in slower trade. Earlier stops were under the 1.8500 and 1.8450 area for lows in Asia but professional buying was noted off the lows traders say suggesting that the near-term bottom is in for the rate. EURO fell and rallied in tandem with GBP today but remaining in a tighter range; low prints in Europe at 1.4695 were never challenged in New York and the rate rallied to make highs at 1.4809 before falling back to the 1.4750 area; stops have been triggered at the 1.4750 area on the rallies and on the dips suggesting that the 1.4750 area is the near-term pivot point. Aggressive traders can look to add to their open EURO longs the next 24 hours or so as the two-way action is likely to continue making dips under the 1.4750 area and above the 1.4690 area solid buying opportunities.

USD/JPY found stops as expected on a break of the 109.40 area for a low print at 109.01 but the rate was able to recover a bit and close near the 109.30 area. Although the USD is lower and expected to make more lows should additional US data this week remain weak; the USD/JPY needs a significant move under the 108.00 handle for a monthly reversal to form. In my view, the Greenback will likely remain two-way the next several days providing a lot of opportunity for short-term traders. The recent rally in the USD is over-extended I think and a correction is overdue. Look for the USD to remain two-way overnight and into tomorrow's data.

Today's US Dollar Trading

•           The USD unable to hold gains in NY
•           Volume a bit better than Friday, stops drive a lot of trade
•           Oil pushes Greenback around as do equities

Overnight Preview

•           Look for tow-way action overnight
•           USD may be overextended to the upside so expect downside bias

Looking Ahead to Tuesday
All times EASTERN (-5 GMT)

•           9:00am USD S&P/CS Composite-20 HPI y/y
•           10:00am USD Consumer Confidence Index
•           10:00am USD New Home Sales
•           10:00am USD HPI m/m
•           10:00am USD Richmond Manufacturing Index
•           2:00pm USD FOMC Meeting Minutes

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com