Daily Forex Outlook

0

0

OIL trades at a fresh record high boosting XAU

Wed, May 7 2008, 04:52 GMT
by Easy Forex Team

Easy Forex


OIL trades at a fresh record high boosting XAU

U.S. Dollar Trading (USD) eased further against a number of majors as market sentiment surrounding the manufacturing and services remain gloomy for the remaining part of 2008. In what was an otherwise quiet day in US markets, share markets saw the NASDAQ rise by 19.19 points (+0.78%) whilst the Dow Jones was also higher by 51.29 points (+0.40%). Crude oil traded once again at a fresh record high for the second straight day reaching US$122.73 a barrel, before ending the session higher at US$1.87 to end at US$121.84. Looking ahead, focus shifts towards the housing sector with pending home sales for the month of March expected to decline by -1% less than the previous of -1.9%.     

The Euro (EURO) was buoyed by strong PPI figures on Tuesday, adding to pressure that the ECB will need to maintain interest rates on hold. Overall the EURUSD traded with a low of 1.5453 and a high of 1.5595 before closing the day at 1.5528 in the New York session. Looking Ahead, ECB officials are scheduled to speak whilst attention will also be placed on Retail Sales figures for the month March. Forecasts lie at 0.2%, better then previous figures of -0.5%.  

The Japanese Yen (JPY) once again was subject to other majors due to closed markets; as analysts say Asian liquidity is lower than average. Overall the USDJPY traded with a low of 104.02 and a high of 105.12 before closing the day at 104.73 in the New York session.

The Sterling (GBP) saw PM services fall to 50.4 (its lowest reading since March 2003) from the previous 52.1 adding to concerns in UK growth. Overall the GBPUSD traded with a low of 1.9637 and a high of 1.9772 before closing the day at 1.9729 in the New York session. An interesting data day is scheduled for the pound, with production data taking center stage.

The Australian Dollar (AUD) saw the RBA hold rates as expected at 7.25%, although accompanying statements signaled that current monetary policy remains adequate for the time being, on expectations that domestic demand will slow. The Aussie Dollar was later boosted by surging commodity and energy prices. Overall the AUDUSD traded with a low of 0.9436 and a high of 0.9501 before closing the day at 0.9797 in the New York session.

Gold (XAU) hit a one-week high as crude oil traded record high. Overall the XAU traded with a low of 872.60 and a high of 882.70  
 

TECHNICAL COMMENTARY                          

Easy Forex

                                                      
Euro – 1.5505
Initial support at 1.5453 (May 6 low) followed by 1.5361 (Mar 2 Low). Initial resistance is now located at 1.5595 (May 6 high) followed by 1.5661 (Apr 29 high).

Yen – 104.90
Initial support is located at 104.03 (May 6 low) followed by 103.23 (Apr 29 low). Initial resistance is now at 105.13 (May 6 high) followed by 105.74 (May 2 low).

Pound – 1.9695
Initial support at 1.9635 (May 6 low) followed by 1.9624 (Apr 30 low). Initial resistance is now at 1.9913 (Apr 29 high) followed by 1.9966 (Apr 28 high).

Australian Dollar – 0.9480
Initial support a 0.9433 (May 6 low) followed by 0.9342 (May 5 low). Initial resistance is now at 0.9510 (May 6 high) followed by 0.9544 (Apr 23 high).

Gold – 877.30
Initial support at 846.00 (May 2 low) followed by 971.60 (May 6 low). Initial resistance is now at 883.10 (May 6 high) followed by 896.50 (Apr 25 high).

Published on  Wed, May 7 2008, 04:55 GMT

Archive

Easy Forex  | P.O. Box 53742. Limassol 3317
http://www.easy-forex.com | info@easy-forex.com

Legal disclaimer and risk disclosure

Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products Risk Disclaimer: The risk disclaimer is meant to inform the user of the potential financial risks of engaging in foreign exchange trading. The transaction of such financial instruments known as forex, fx, currency, and dealt on a valued basis known as 'spot' or 'forward' 'Day Trading' and 'option', can contain a substantial degree of risk. Before deciding to undertake such transactions with Advanced currency markets Easy-Forex LTD (herewith expressed as Easy-Forex) and indeed any other firm offering similar services, a user should carefully evaluate whether his/her financial situation is appropriate. Trading foreign exchange may result in substantial loss of funds and/or complete loss of funds and therefore should only be undertaken with risk capital. The definition of risk capital is funds that are not necessary to the survival or well being of the user. Easy-Forex strongly recommends that a user considering trading foreign exchange products read through all the main topics contained in the Easy-Forex website so that he/she may obtain a clear and accurate understanding of the risks inherent to fx trading. Opinions and analysis on potential expected market movements contained within the Easy-Forex website are not to be considered necessarily precise or timely and due to the public nature of the internet, Easy-Forex cannot at any time guarantee the accuracy of such information. Trading on-line, no matter how convenient or efficient it may be, does not necessarily reduce the risks associated with foreign exchange trading, and Easy-Forex does not accept any responsibility towards any customer, member or third party, acting on such information contained on the web site as to the accuracy or delay of information such as quotations, news and charts derived from quotations.

Interested in forex trading? forex brokerage firms!


MF Global UK Limited
Contact the broker/FDM
Open a demo account		GFT
Contact the broker/FDM
Open a demo account
IG Markets
Contact the broker/FDM
Open a demo account		FXA Securities Ltd ( MF Global Group)
Contact the broker/FDM
Open a demo account		Advanced Markets
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.