Posted by
admin on October 20, 2010 |
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Daily Review 20/10/2010
Today’s Forex Trading review:
USD Dollar (USD)
The Dollar gained against most of the majors as China unexpectedly raised the interest rates in concern of global economic growth spurring demand for safety currencies. Building permits came out 0.54M worse than expected 0.58M. Housing Starts came out 0.61M better than expected 0.59M. The Stock Markets in U.S. closed negative with Dow Jones losing -1.48% and the Nasdaq declined by -1.76%. The Commodities tumbled with Crude Oil crushing by more than -4.3% closing at 79.5$ a barrel. Gold (XAU) plummeted by 40$ of its price closing at 1331$ an ounce. Today, The Fed’s Beige Book will come out.
EURO (EUR)
The Euro lost gains versus the dollar falling as much as 300 pips and momentarily breaking the 1.37 level but quickly jumping back to 1.375 zones. Overbought conditions lead the investors to take profit. The German Zew Economic sentiment came out -7.2 worse than expected -7 also supported the weakness of the Euro. Trading below the 1.3780 resistance level keeps the momentum negative for the pair. Overall, EUR/USD traded with a low of 1.3696 and with a high of 1.4002. Today, the German PPI is expected at 0.2% vs. 0% previously.
EUR/USD – Last: 1.3773
| Resistance |
1.3790 |
1.3860 |
1.4000 |
| Support |
1.3700 |
|
|
British Pound (GBP)
The Pound collapsed versus the dollar as the Chinese rate hike triggered the buying pressure of the dollar. CBI Industrial Trends Orders came out -28 worse than expected -19 also supported the weakness of the Sterling. Trading below the 1.5770 resistance level keeps the momentum negative for the pair. Overall, GBP/USD traded at a low of 1.5649 and a high of 1.5935. Today, The MPC Meeting minutes are expected. The Public Sector Net Borrowing is expected at 14.2B vs. 15.3B previously.
GBP/USD – Last: 1.5727
| Resistance |
1.5740 |
1.5770 |
1.5840 |
| Support |
1.5650 |
|
|
Japanese Yen (JPY)
The Yen was among the strongest performers against most of the currencies but still no breakthrough was seen versus the dollar as it capped in a range between the 80.90 support and 81.90 resistance boundaries. Breaking the boundaries levels will take the pair to new trading levels. Overall the USD/JPY traded at low of 80.84 and a high of 81.91. No economic data is expected today.
USD/JPY-Last: 81.35
| Resistance |
81.90 |
82.80 |
|
| Support |
80.90 |
|
|
Canadian dollar (CAD)
The U.S. dollar gained against the Canada’s dollar for a fourth day as BOC kept the interest rate unchanged at 1% reducing its economic growth forecast. Commodities markets crushed with Crude Oil losing more than -4% also supported the weakness of the loonie. The USD/CAD pair seems to be on a bullish trend as long as the pair remains above the 1.0220 support level. Overall, USD/CAD traded with a low of 1.0160 and with a high of 1.0372. Today, The Wholesale Sales are expected at 0.5% vs. -0.1% previously and later the BOC Monetary Policy Report will come out.
USD/CAD – Last: 1.0295
| Resistance |
1.0280 |
1.0360 |
|
| Support |
1.0220 |
1.0140 |
|
Tags: currency trading, daily forex analysis, Daily Forex Review, forex market, Forex Trading
Posted by
admin on October 19, 2010 |
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Daily Review 19/10/2010
Today’s Forex Trading review:
USD Dollar (USD)
The Dollar strengthened slightly against most of the major currencies. Industrial production came out as expected with no change at -0.2%. The TIC Net long-Term Transactions greatly exceeded expectations; 128.70B vs. the forecast of 47.5B. Adding to the positive tone, the NAHB Housing market was also up by 16.00 vs. an expected 13.00. The NASDAQ and Dow Jones advanced by 0.73% and 0.48%, respectively. Crude oil was up by 2.3% to close at $83 a barrel, while Gold (XAU) increased by 10 cents, closing at $1372 an ounce. Today, Building permits are expected at 0.58M vs. 0.57M prior, Housing Starts are expected at 0.59M vs 0.60M prior, and Fed Chairman Bernanke is scheduled to speak later on.
Euro (EUR)
The Euro weakened considerably against the Dollar to fall below 1.4000 after testing it numerous times. The EUR/USD seems to be in a range between 1.3925 and 1.400. Above 1.4000, we can expect positive momentum. Overall, EUR/USD traded with a low of 1.3830 and with a high of 1.3999. Today, the German Zew Economic sentiment report is expected at -7.00 vs. a prior -3.30. The Zew Economic sentiment scheduled to be released and is expected at -2.00 vs. 4.40 prior. The ECB president is also set to speak.
EUR/USD – Last: 1.3937
| Resistance |
1.4000 |
1.4158 |
|
| Support |
1.3917 |
1.3831 |
|
British Pound (GBP)
The Pound dropped against the Dollar, falling below the 1.5900 level after the pair tried to break 1.5950, which seems to be its resistance. The momentum is slightly bullish as long as the GBP/USD is higher than 1.5750. Overall, GBP/USD traded at a low of 1.5834 and a high of 1.5993. Today, CBI Industrial Trends Orders are to be announced and are expected at -19 vs. -17.00 previously, and the BOE governor is to speak later on.
GBP/USD – Last: 1.5881
| Resistance |
1.5944 |
|
|
| Support |
1.5836 |
|
|
Japanese Yen (JPY)
The Yen entered a tight range with the Dollar, between 81.12 and 81.34 and the momentum will be governed by a breakout from this range. Below 81.12, the momentum can be expected to remain negative, and above 81.34 the momentum may be expected to be positive. Overall the USD/JPY traded at a high of 81.39 and a low of 81.12.
USD/JPY-Last: 81.35
| Resistance |
81.37 |
81.70 |
|
| Support |
81.12 |
80.86 |
|
Canadian dollar (CAD)
The Canadian Dollar weakened against the dollar to reach highs of 1.0168 and corrected slightly, to levels of 1.01502. The USD/CAD pair seems to be on a bullish trend as long as the pair remains above parity. Overall, USD/CAD traded with a low of 1.0133 and with a high of 1.0229.Today, although the Interest rate decision didn’t change at 1.00%, ESIST traders wait eagerly to take advantage of the announcement.
USD/CAD – Last: 1.0185
| Resistance |
1.0196 |
1.0225 |
|
| Support |
1.0132 |
1.0000 |
|
Tags: currency trading, daily forex analysis, Daily Forex Review, forex market, Forex Trading
Posted by
admin on October 18, 2010 |
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Daily Review 18/10/2010
Today’s Forex Trading review:
USD Dollar (USD)
Friday saw the dollar losing momentum to reach another 10 month low, yet toward the end of the trading day, the dollar strengthened. Most of the volatility was seen during Bernanke’s speech, where he hinted towards interest rates not moving and the need for additional stimulus. Other then Bernanke’s speech about the new quantitative easing program, core CPI came out at 0% vs. an expected 0.10%. Core retail sales came out as expected at 0.40%. The fed budget balance came out at -34.50B vs. an expected -32.00B. The stock markets closed with the DOW JONES losing -0.29% and the NASDAQ moving up by 1.37%. Crude oil decreased by 1.7%, closing at $81.25 a barrel. Gold (XAU) declined slightly by -0.4%, closing at $1372 an ounce. Today, the TIC Long-Term Purchases is expected to be released at 47.5B vs. 61.2B previously, and the Industrial Production expectations will also be released and is not expected to change from the previous results of 0.2%.
Euro (EUR)
Although Friday saw the euro strengthen against the dollar to break a 10 month high and reach 1.4156, the pair lost momentum and fell sharply during the American session. The CPI results were of no change, remaining as expected at 1%. The Asian session last night saw the Euro continue to weaken against the major currencies. As long as the EUR/USD is above 1.3890, the trend is still bullish. We may witness a slight correction based on overbought conditions, and a bearish tone may settle in if the market breaks Friday’s low of 1.3935. Overall, EUR/USD traded with a low of 1.3861 and with a high of 1.3895. There is no economic data expected today.
EUR/USD – Last: 1.3885
|
Resistance
|
1.3950
|
1.4020
|
1.4120
|
|
Support
|
1.3860
|
1.3780
|
British Pound (GBP)
The Pound continued to rise against the Dollar to break the much tested 1.6060. The American session saw the Pound lose ground and return to 1.6000 zone. The GBP/USD on the daily chart is still above its moving average, and if the pair breaks 1.5970, it might push the pair lower to the 1.59 zone. The pair reached a low of 1.5914 and a high of 1.5949. Today, no economic data is expected.
GBP/USD – Last: 1. 5950
|
Resistance
|
1.6020
|
1.6060
|
|
|
Support
|
1.5920
|
1.5770
|
Japanese Yen (JPY)
Friday saw the Yen strengthen dramatically against the Dollar to return to its 15 year low of 80.86. The American session saw the yen weaken to levels of 81.35. Last night saw the Yen strengthen slightly. The momentum on the pair is still bearish as long as the USD/JPY remains below 81.50. Overall, USD/JPY traded with a low of 81.13 and with a high of 81.40. Today, no economic data is expected.
USD/JPY-Last: 81.20
|
Resistance
|
81.50
|
81.70
|
|
|
Support
|
81.20
|
80.80
|
Canadian dollar (CAD)
The Canadian Dollar strengthened versus the Dollar advancing 150 pips from parity. Friday’s announcement of Manufacturing Sales was much higher than expected and came out at 2% vs.0.5%. The momentum of the USD/CAD seems to be positive as long as the pair remains above 1.0080. Overall, USD/CAD traded with a low of 1.001 and with a high of 1.095.Today, no economic data is expected.
USD/CAD – Last: 1.0050
|
Resistance
|
1.0180
|
1.0220
|
|
|
Support
|
1.0080
|
1.0020
|
Tags: currency trading, daily forex analysis, Daily Forex Review, forex market, Forex Trading
