US Dollar continues slide
Daily Forex Trading Review 03/08/2010
USD Dollar (USD) – The Dollar weakened against most major currencies as risk appetite was boosted by better than expected U.S. data on manufacturing activity which came out at 55.5 vs. 54.2 forecasts, succeeded to support risky assets instead of the dollar. Federal Reserve Chairman Ben Bernanke said rising wages would probably spur household spending in the next few quarters, even as weak job gains dragged down consumer confidence. NASDAQ and Dow Jones rose by 1.80% and 1.99% respectively, crude oil jumped by 3.0% closing at 81.34$ a barrel, Gold (XAU) strengthened by 0.1% closing at 1185.4$ an ounce. Today, Pending Home Sales are expected to become positive from -30.0% to 0.5%.
EURO (EUR) – The Euro strengthened to a three-month high versus the Dollar as a report showed U.S. manufacturing expanded for a 12th straight month. The pair has succeeded to break the resistance at 1.3110, therefore the momentum is strongly bullish, the next resistance is located at 1.3200 level. Overall, EUR/USD traded with a low of 1.3055 and with a high of 1.3195.
EUR/USD – Last: 1.3165
| Resistance | 1.3195 | ||
| Support | 1.3100 | 1.3050 | 1.2950 |
British Pound (GBP) – The Pound rose to the highest level in almost six months against the Dollar as a report showed U.K. manufacturing expanded for a 10th straight month in July, a sign the U.K. economy is recovering faster than some economists had forecast. As long the pair is trading above the resistance at 1.5660 on the daily chart the momentum is clearly bullish, the next support on the one hour chart is 1.5665. Overall, GBP/USD traded with a low of 1.5700 and with a high of 1.5907.
GBP/USD – Last: 1.5876
| Resistance | 1.5910 | ||
| Support | 1.5720 | 1.5640 | 1.5520 |
Japanese Yen (JPY) –The Yen fell against most of his major as signs the global recovery is gaining momentum fueled investor appetite for riskier assets. The main resistance of the USD/JPY on the one hour chart is 87.00 level, as long it’s trading below this level a short position is preferred and the momentum is clearly bearish, the next support is located at 85.90, the main momentum is clearly bearish. Overall, USD/JPY traded with a low of 86.32 and with a high of 86.88.
USD/JPY-Last: 86.37
| Resistance | 86.90 | 87.70 | 88.10 |
| Support | 86.15 | 86.00 |
Canadian dollar (CAD) – The Canadian Dollar strengthened against the Dollar, reached the strongest level since June 22, as futures on crude oil the nation’s largest export climbed 3.2 percent to $81.44 a barrel, succeeded to push the Canadian as well. As long the USD/CAD below 1.0400 levels the momentum is bearish, the next support on the daily chart is located at 1.0140. Overall, USD/CAD traded with a low of 1.0204 and with a high of 1.0290.
USD/CAD – Last: 1.0241
| Resistance | 1.0255 | 1.0345 | 1.0400 |
| Support | 1.0200 |
