The USD continued in solid two-way trade today after earlier gains gave way to losses mid-day and then reversed yet again to finish better on the day against most pairs. Traders blame volatility in equities today for the whipsaw across the board as Wall Street was unable to hold gains into the end of the day. GBP rallied overnight into high prints at 1.5094 but those highs remained unchallenged in New York trade as sellers offered the rate lower more than a full handle to finish at the 1.4920 area; traders note pressure from EURO losses late in the day suggesting that the near-term lows still are under threat for additional attempts for new 2008 lows.

EURO tracked equities for most of the day rallying to new US highs mid-day at 1.2701 before reversing to make new lows on the day at 1.2566 making for a slight reversal on the charts; traders in both pairs note that the same buyers seen the past few sessions were back on the dips but unable to hold gains suggests that stops will build overnight under current lows. USD/JPY had high prints on equities strength at 97.42 before reversing with stocks for a test of the lows at 96.01 but unable to trigger stops said to be resting in that area; the rate holding at 96.50 into the end of day. USD/CHF rallied in thin volume to find stops above the 1.2024 area for a new two-year high at 1.2049 and ends firm above the 1.2000 area at 1.2030; traders note that technical buying appears to be holding the rate firm as reversal signals evaporate in late trade. Weaker commodities pricing also cited for the better USD although usually that would be bearish in the rate making for difficult trade.

Today's US data was considered neutral for the Greenback and traders note that despite the volatility and two-way action today the USD feels neutral on the day suggesting that more two-way action is likely overnight. In my view, despite the late rally in the USD , the recent ranges are holding with the exception of Swissy suggesting that the majors will continue to sketch out wide trading ranges as we head into the end of the week and possibly the month. With a short week next week for the US Thanksgiving holiday expect book-squaring and liquidation of positions as traders finish the last full week of the month by Friday. Overnight the Yen crosses likely will remain in focus as lower equities have prompted Yen selling so expect more losses for the majors as they rotate back to the lows ahead of US trade.

Today's US Dollar Trading
• Two-way action due to equities
• Traders note USD feels neutral
• EURO makes lows late

Overnight Preview
• Look for more USD upside to start overnight
• Two-way action likely to continue into US tomorrow

Looking Ahead to Wednesday
All times EASTERN (-5 GMT)
• 8:30am USD Building Permits
• 8:30am USD Core CPI m/m
• 8:30am USD CPI m/m
• 8:30am USD Housing Starts
• 9:00am USD FOMC Member Kohn Speaks
• 10:35am USD Crude Oil Inventories
• 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