USD weakness continues, EUR & AUD New Highs

The US dollar continued to weaken last week as the Euro and Australian dollar took the lead in its demise. The subprime market continued to weigh on US equities, but greater than expected earnings from the giant Microsoft helped to give the stock market a nudge into positive territory (almost 135 points) as the Dow closed at 13806.70. Lately, the stock market has been dictating the movement of yen crosses as investors begin to scale back on their risks because of uncertainty of the future. The AUDJPY has been weighing on the AUDUSD which looks long overdue for a correction. The AUDUSD, already at all time highs, is nearing completion of a 2.618 fib. extension at .9219 taken from 10-17-07 low, 10-19-07 high, and 10-22-07 low. If any area will offer weakness in this pair, this would be the place. The Aussie has been absolutely relentless over the last week and looks to keep rolling. The EURUSD pair is pressing up against resistance at the 1.4400 level. It too is at all time highs as the US dollar index continues to slump.