Search
Daily Forex Outlook
0
0
When UK's away, pound comes out to play
Tue, Aug 26 2008, 01:11 GMT
by Easy Forex Team
When UK’s away, pound comes out to play
U.S. Dollar Trading (USD) received a major boost through a sizable cable sell off during the Asian session dragging down all the majors against the greenback. Sentiment slowly reversed during the remainder of the day picking up speed as US equities tumbled on reports another US bank failed and speculation of large write downs in Q3. July Existing Home Sales supported rising 3.1% to 5 Million from 4.85 Million in June. In the U.S. share markets, the NASDAQ was down 49 points (-2.03%) and the Dow Jones was down 241 points (-2.08%). Crude Oil closed up $0.50 ending the New York session at $115.10 per barrel. Looking ahead, the Case Shiller Home price index is forecast to drop -0.8% in June. Conference Board Consumer Confidence is expected to increase to 53 from 51.9 in August. July New Home Sales are expected to remain 530K.
The Euro (EUR) came under pressure falling in sympathy with the large falls in Cable before reversing as US equities turned south. Oil was unable to maintain gains and its pullback weighed on the single currency into the US close. Overall the EUR/USD traded with a low of 1.4696 and a high of 1.4809 before closing the day at 1.4755 in the New York session. Looking ahead, German GDP Q2 expected at -0.5% along with Consumer Confidence expected at 2 down slightly from 2.1. Also released, IFO Index forecast down slightly to 97.1.
The Japanese Yen (JPY) gained again falling off the 110 level as risk aversion spiked on continued rumbling of global banking issues. GBY/JPY came under heavy pressure during the Asian session. Overall the USDJPY traded with a low of 109.02 and a high of 110.29 before closing the day around 109.30 in the New York session.
The Sterling (GBP) lead the fall in the Asian session as stops below 1.8500 were cleared inducing an 80 pip fall to multi-year lows. Support was found in the European session although trading was light as UK was away on a bank Holiday. USD weakness during the US session turned the rebound into a rally but gains were pared to end the day roughly where we began. Overall the GDP/USD traded with a low of 1.8405 and a high of 1.8590 before closing the day at 1.8530 in the New York session.
The Australian Dollar (AUD) fell in sympathy with the cable but was able to track higher during the rest of the day as stable gold prices supported. AUD/JPY came under pressure as stocks weakened. Overall the AUD/USD traded with a low of 0.8615 and a high of 0.8690 before closing the US session at 0.8740. UPDATE AUD/USD Breaks below .8600 in Asian Trade.
Gold (XAU) was unable to capitalize on increasing risk aversion as Oil pared gains and USD strengthened. Overall trading with a low of USD$817.50 and high of USD$825.70 before ending the New York session at USD$822 an ounce.
TECHNICAL COMMENTARY
Euro – 1.4715
Initial support at 1.4697 (Aug 22 low) followed by 1.4673 (Aug 20 low). Initial resistance is now located 1.4901 (Aug 22 low) at followed by 1.4963 (23.6% retrace 1.6038 to 1.4631).
Yen – 109.40
Initial support is located at 108.43 (Aug 22) followed by 108.04 (38.2% retrace 103.78 to 110.67). Initial resistance is now at 110.29 (Aug 25 high) followed by 110.67 (Aug 15 high).
Pound – 1.8465
Initial support at 1.8406 (Aug 25 low) followed by 1.8385 (July 25 2006 low). Initial resistance is now at 1.8787 (Aug 14 high) followed by 1.8901 (23.6% retrace 2.0157 to 1.8513).
Australian Dollar – 0.8585
Initial support at 0.8580 (trendline support) followed by 0.8515 (Jan 15 low). Initial resistance is now at 0.8807 (Aug 22 High) followed by 0.8846(Aug 12 high).
Gold – 818
Initial support at 812.3 (Aug 22 low) followed by 801 (Aug 20 low). Initial resistance is now at 838.60 (Aug 21 high) followed by 846 (Former May 2 support).
Published on Tue, Aug 26 2008, 01:20 GMT
Archive
- US Stocks Crash on Recession Confirmation
Published On Tue, Dec 2 2008, 02:37 GMT - Euro weakens ahead of ECB this week
Published On Mon, Dec 1 2008, 03:12 GMT - Calm Markets with US away, Black Friday today
Published On Fri, Nov 28 2008, 02:30 GMT - 4th day of US stock gains ahead of Thanksgiving Holiday
Published On Thu, Nov 27 2008, 02:12 GMT - Fed Unveils $800B Consumer Loan Program
Published On Wed, Nov 26 2008, 01:59 GMT
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!
  Contact the broker/FDM Open a demo account | Contact the broker/FDM Open a demo account  |  Contact the broker/FDM Open a demo account |  Contact the broker/FDM |  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]
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 trade 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.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.