•  
  • New York 06:04
  • London 10:04
  • Barcelona 11:04
  • Tokyo 19:04
  • Sydney 21:04

  • SignUp | Login

Daily Forex Outlook

USD Bounces Back from the Brink

Wed, Jul 29 2009, 02:56 GMT
by Easy Forex Team

Easy Forex  |  View company's profile


Vote:

0

0

USD Bounces Back from the Brink

U.S. Dollar Trading (USD) the Dollar index bounced off a key level overnight at 78.30 last visited in May. The Failure of the Euro at 1.4300 and subsequent sell off dragged all the majors lower. Weak stocks and Oil also contributed. US data was strong again but the recent 10%+ equity rally is showing signs of stalling. Case Schiller House Prices in May were +0.5% vs. -0.6%. CB Consumer Confidence fell to 46.6 vs. 49.3 previously adding to the sour sentiment. Crude Oil ended down $1.15 higher to close at $68.38. In US share markets, S&P ended -2.56 points (-0.26%) at 979.62, NASDAQ ended +7.62 points (+0.39%) at 1975.51 and DOW JONES ended -11.79 points (-0.13%) at 9096. Looking ahead, June Durable Goods Orders forecast at -0.6% vs. 1.8% previously.

The Euro (EUR) retested 1.4300 and failed for the second day encouraging heavy profit taking. EUR/JPY dropped 2 yen after failing at the 136 Yen level adding to the downside pressure. Weak Oil also fueled the bears. The technicals are very mixed and choppy action is expected. Overall the EUR/USD traded with a low of 1.4130 and a high of 1.4306 before closing at 1.4160.

The Japanese Yen (JPY) USD weakness in Europe let the USD/JPY fall below 95 and the market reacted by testing 94 before finding and bouncing with a late relief rally in US stocks. EUR/JPY and AUD/JPY profit taking helped make the Yen strong. Overall the USDJPY traded with a low of 94.02 and a high of 95.20 before closing the day around 94.50 in the New York session. Looking ahead, Japan Industrial Output is forecast at 2.4% in June vs. 5.7% previously. UPDATE JULY RETAIL SALES -3% vs. -2.8%.

The Sterling (GBP) rallied with the Euro early in Europe but when the wheels fell off the pair crashed back to 1.6400. July CBI distributive Trades at -15 vs. -12 forecast. The market volatility in the pound is making it hard to break the recent range as risk appetite fights with poor fundamentals. Overall the GBP/USD traded with a low of 1.6389 and a high of 1.6559 before closing the day at 1.6455 in the New York session. Looking ahead, June Consumer credit forecast at 0.3% and Mortgage approvals up at 47k vs. 43k previously.

The Australian Dollar (AUD) broke year highs and set the Asia session on fire with RBA Governor Stevens widely seen to have shifted to a neutral stance from dovish and talk of the rate hikes coming before unemployment hits its peak in a speech given in Sydney. AUD/JPY surged and the AUD only grudgingly fell with the rest of the market in the US session. Overall the AUD/USD traded with a low of 0.8199 and a high of 0.8341 before closing the US session at 0.8240.

Gold (XAU) broke out the range to the downside tracking Oil lower. Overall trading with a low of USD$933 and high of USD$957 before ending the New York session at USD$938 an ounce.

TECHNICAL COMMENTARY

Chart

Euro – 1.4170

Initial support at 1.4120 (Jul 23 low) followed by 1.4056 (Jul 16 low). Initial resistance is now located at 1.4338 (Jun 3 high) followed by 1.4719 (Dec 18 high)

Yen – 94.40

Initial support is located at 93.10 (Jul 22 low) followed by 92.72 (July 14 low). Initial resistance is now at 95.46 (Jul 7 high) followed by 96.24 (July 6 high).

Pound – 1.6410

Initial support at 1.6311 (July 22 low) followed by 1.6266 (Jul 13 low). Initial resistance is now at 1.6586 (Jun 23 high) followed by 1.6745 (June 30 high).

Australian Dollar – 0.8255

Initial support at 0.8090 (July 15 low) followed by the 0.7925 (July 14 low). Initial resistance is now at 0.8263 (June 3 high) followed by 0.8378 (Sept 26 high).

Gold – 938

Initial support at 932 (Jul 17 low) followed by 918 (July 14 low). Initial resistance is now at 965 (June 10 high) followed by 990 (Jun 3 high).

Published on  Wed, Jul 29 2009, 02:59 GMT


Easy Forex http://www.easy-forex.com | info@easy-forex.com

Archive


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.
Vote:

0

0

Related reports

Financial Trend Analysis Strategy: Short EURUSD by Financial Trend Analysis
Mon, Mar 22 2010, 08:40 GMT

The curves in both the US and Germany flattened in a bearish to mixed way by KBC Bank
Mon, Mar 22 2010, 08:12 GMT

The Greek Tragedy: Euro hurting as EU summit approaches by FXstreet.com
Mon, Mar 22 2010, 08:11 GMT

USD Still Gaining Ground by ACM - Advanced Currency Markets
Mon, Mar 22 2010, 08:04 GMT

Daily Forex Overview by Dukascopy Swiss FX Group
Mon, Mar 22 2010, 08:03 GMT

audusd, indicator, eurusd, gold, gbpusd, usdjpy

[ View All ]

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
Interbank FX, LLC
Contact the broker/FDM
Open a demo account		FXDD
Contact the broker/FDM
Open a demo account		Alpari (UK) Limited
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

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.

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.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.