Dollar Fluctuates vs Most Majors
Daily Review 03/09/2010
Today’s Forex Trading review:
USD Dollar (USD)
The Dollar fluctuated against most major currencies after pending U.S. home resales unexpectedly rose, signaling the housing market may start to stabilize and boosting investor appetite for higher yielding assets. NASDAQ and Dow Jones advanced by 1.06% and 0.49% respectively , crude oil rose by 1.5%, closing at 75.02$ a barrel, Gold (XAU) strengthened by 0.4% , closing at 1253.4$ an ounce. Today, Non-Farm Employment Change is expected to declined from -131K to -118K, Unemployment Rate is expected at 9.6% vs. 9.5% prior, ISM Non-Manufacturing PMI is expected to weak from 54.30 to 53.20.
EURO (EUR)
The Euro was near its strongest level in two weeks versus the Dollar after European Central Bank President Jean-Claude Trichet said a double-dip recession is “not in the cards.” Speaking after the ECB left its benchmark rate at 1 percent. As long the rate is above 1.2800 level a long position is preferred and the momentum is bullish, the next resistance on the one hour chart is located at 1.2860, if the rate crosses this level the euro will continue with its bullish trend. Overall, EUR/USD traded with a low of 1.2776 and with a high of 1.2848.Today, Retail Sales are expected to rise from 0.0% to 0.3%.
EUR/USD – Last: 1.2821
| Resistance | 1.2855 | ||
| Support | 1.2775 | 1.2700 | 1.2625 |
British Pound (GBP)
The Pound weakened for a third day against the Euro and declined against the Dollar as a report showed U.K. house prices slid the most in six months in August (-0.90% vs. -0.30% forecast), stoking speculation that the economic recovery may falter. The GBP/USD is still trading in negative range and still trading below the 10 moving average on the daily chart, therefore the momentum is bearish, the next support level on the one hour chart is located at 1.5350. Overall, GBP/USD traded with a low of 1.5350 and with a high of 1.5451. Today, Services PMI is expected to be like the previous one at 53.1.
GBP/USD – Last: 1.5408
| Resistance | 1.5430 | 1.5490 | 1.5575 |
| Support | 1.5380 | 1.5330 |
Japanese Yen (JPY)
The Yen rose versus the major currencies on speculation the Japanese companies are bringing home overseas earnings before the first half of the fiscal ends this month. The momentum of the USD/JPY is still 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 83.99 and with a high of 84.55. No economic data expected today.
USD/JPY-Last: 84.30
| Resistance | 84.66 | 85.90 | |
| Support | 84.00 | 83.35 |
Canadian dollar (CAD)
The Canadian Dollar depreciated versus the Dollar after the biggest one-day rally in three months on concern U.S. job losses will stall the global economic recovery. As long the USD/CAD below 1.0550 levels a short position is preferred, the next support on the daily chart is located at 1.0450, if the price cross this level the trend will continue to be bearish. Overall, USD/CAD traded with a low of 1.0471 and with a high of 1.0555. No economic data expected today.
USD/CAD – Last: 1.0544
| Resistance | 1.0555 | 1.0615 | 1.0675 |
| Support | 1.0520 | 1.0470 |
