Dollar Continues to Rise Versus Other Majors
Daily Review 23/08/2010
Today’s Forex Trading review:
USD Dollar (USD)- The Dollar continue to rise against other major currencies on Friday as fears that the global economic recovery is slowing down after worse than expected U.S. jobless claims that rose to their highest level since November 2009 on Thursday ,causing investors to sell risky assets and to stick with the Dollar . NASDAQ strengthened by 0.04% and Dow Jones weakened by 0.56%. Crude oil weakened by 1.3% closing at 73.4$ a barrel and Gold (XAU) declined by 0.5%, closing at 1228.8$ an ounce. No economic data expected today.
EURO (EUR)- The Euro dropped for a second week against the Dollar to a five-week low as weaker economic data and calls by a European Central Bank official for more economic aid damped investor appetite for higher-yielding currencies. The pair has been trading downwards since August and trading under the 10 moving average on the daily chart, therefore the momentum is bearish and a short position is preferred. Overall, EUR/USD traded with a low of 1.2663 and with a high of 1.2833.Today, German Flash Manufacturing PMI is expected at 60.9 vs. 61.2 prior, Flash Manufacturing PMI is expected at 56.3 vs. 56.7 prior.
EUR/USD – Last: 1.2712
| Resistance | 1.2734 | 1.2833 | 1.2922 |
| Support | 1.2660 |
British Pound (GBP)- The Pound fell versus the Dollar and yen as concern that the global economic recovery is slowing boosted demand for the safest assets. The GBP/USD has been trading very stable in the last week, the next support on the daily chart is 1.5480, if the price breaks this level a short position is preferred. Overall, GBP/USD traded with a low of 1.5460 and with a high of 1.5595.
GBP/USD – Last: 1.5563
| Resistance | 1.5588 | 1.5700 | |
| Support | 1.5500 | 1.5460 |
Japanese Yen (JPY) – The Yen rose against most majors as data indicated the global economic recovery may be faltering. As long the USD\\JPY is trading below 86.50 level a short position is preferred and the momentum is clearly bearish, the next support is located at 84.60. Overall, USD/JPY traded with a low of 85.19 and with a high of 85.82. No economic data expected today.
USD/JPY-Last: 85.35
| Resistance | 85.90 | 86.40 | |
| Support | 85.10 | 84.90 |
Canadian dollar (CAD) – The Canadian Dollar weakened to the lowest level in a month versus the Dollar after a report of Core CPI showed negative data in July, came lower than the forecast (-0.1% vs. 0.1), led the investors to sell the Canadian currency . As long the USD/CAD above 1.0450 levels a long position is preferred, the next resistance on the one hour chart is located at 1.0520 if the price cross this level the trend will continue to be bullish. Overall, USD/CAD traded with a low of 1.0382 and with a high of 1.0515. No economic data expected today.
USD/CAD – Last: 1.0490
| Resistance | 1.0515 | ||
| Support | 1.0465 | 1.0380 | 1.0300 |
