USD Posts Gains against Major Currencies
Daily Review 25/08/2010
Today’s Forex Trading review:
USD Dollar (USD)
The Dollar rose against other major currencies after industry data showed that U.S. existing home sales fell to their lowest level in 15 years (3.83M vs. 4.68M forecast), causing to sell higher yielding assets . NASDAQ and Dow Jones weakened by 1.66% and 1.32% respectively , crude oil fell by 2.0% the lowest price in 11 weeks ,closing at 71.36$ a barrel, Gold (XAU) rose by 0.4% , closing at 1233.4$ an ounce. Today, Core Durable Goods Orders are expected to rise from -0.9% to 0.6%, New Home Sales are expected at 333K vs. 330K prior.
EURO (EUR)
The Euro fell heavily against the yen and closed almost unchanged versus the Dollar, touching a six-week low during the session as main indexes and commodities fell strongly, more than 1.5 percent, supported to buy safety currencies like the Yen and Dollar. The pair continuing to trade downwards, therefore the momentum is still strongly bearish and a short position is preferred. Overall, EUR/USD traded with a low of 1.2587 and with a high of 1.2719. Today, German Ifo Business Climate is expected to weak from 106.2 to 105.8.
EUR/USD – Last: 1.2656
| Resistance | 1.2730 | 1.2830 | 1.2920 |
| Support | 1.2590 |
British Pound (GBP)
The Pound fell against the Dollar after the London based Times reported that Bank of England policy maker Martin Weal said the U.K. faces a “real risk” of a second recession . The GBP/USD has broken the support level at 1.5480 and crossed down the 10 moving average on the daily graph, therefore a short position is preferred. Overall, GBP/USD traded with a low of 1.5372 and with a high of 1.5505. No economic data expected today.
GBP/USD – Last: 1.5430
| Resistance | 1.5475 | 1.5620 | 1.5700 |
| Support | 1.5370 |
Japanese Yen (JPY)
The Yen advanced to the strongest level since June 1995 against the Dollar as concern the global economy is slowing encouraged demand for safer assets. Trade Balance came out better than expected at 0.61T vs. 0.47T forecast. The momentum of the USD/JPY is strongly bearish, the next support on the daily chart is located at 83.50, therefore a short position is preferred. Overall, USD/JPY traded with a low of 83.59 and with a high of 85.15. No economic data expected today.
USD/JPY-Last: 84.38
| Resistance | 84.40 | 85.40 | 86.0 |
| Support | 83.60 |
Canadian Dollar (CAD)
The Canadian Dollar fell for a fourth straight day versus the Dollar, touching the lowest level in seven weeks, as investors soured on higher yielding assets and currencies. As long the USD/CAD above 1.0500 levels a long position is preferred, the next resistance on the daily chart is located at 1.0700, if the price cross this level the trend will continue to be bullish. Overall, USD/CAD traded with a low of 1.0536 and with a high of 1.0664. No major economic data expected today.
USD/CAD – Last: 1.0595
| Resistance | 1.0665 | ||
| Support | 1.0555 | 1.0445 | 1.0380 |
