Market holidays cause for technical trading. As investors await the highly anticipated BoJ interest rate announcement, out on Wednesday. CURRENCY TRADING SUMMARY – 20 FEBRUARY 07 (23:30GMT)
- U.S. Dollar Trading (USD) saw markets closed for President’s day, with most major currencies drifting against the dollar. US share markets were also closed Monday. Crude oil dropped by US$0.87 a barrel to US$58.52. Looking ahead, US economic releases are few this week with much attention on tomorrow’s Core CPI data
- The Euro (EUR) had no releases overnight, a cause for sideways trading. Overall, the Euro traded within a range of 1.3120 to a high of 1.3164 before closing at 1.3155 in the New York session. Looking ahead no key releases are scheduled today with attention focused on tomorrow’s current account.
- The Japanese Yen (JPY) saw the cabinet office leave its monthly economic report unchanged for the third time running. With the basis on the Japanese economy recovering. Overall, the JPY traded within a range of a low 119.20 and a high 119.73 before closing at 119.60 in the New York session. Looking ahead, no economic data is scheduled for release today with plenty anticipation on the BoJ interest rate announcement on Wednesday.
- The Sterling (GBP) remained relatively steady despite Rightmove house prices for the month of January show a rise of 0.9% (higher than the expected 0.2%). Overall the GBP traded within a range of a low 1.9433 and a high of 1.9554 before closing the day at 1.9499 in the New York session.
- The Australian Dollar (AUD) had no major releases on Monday which looks to be the trend throughout the week. Overall the AUD traded within a range of a low 0.7847 and a high of 0.7886 and closing at that level in the New York session.
- Gold (XAU) rose by US$0.40 an ounce to US$673.20, reaching the highest levels seen since July 2006.
TECHNICAL COMMENTARY | Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 | | EUR/USD | 1.3024 | 1.3093 | 1.3155 | 1.3176 | 1.3196 | | USD/JPY | 118.32 | 118.98 | 119.75 | 120.79 | 121.37 | | GBP/USD | 1.9402 | 1.9464 | 1.9510 | 1.9679 | 1.9751 | | AUD/USD | 0.7787 | 0.7824 | 0.7865 | 0.7940 | 0.7982 | | XAU/USD | 648.00 | 657.30 | 671.05 | 673.50 | 676.35 |
Initial support at 1.3093 (Feb 16 low) followed by 1.3024 (Feb 14 low). Initial resistance is now located at 1.3176 (61.8% retracement of 1.3368-1.2865 decline) followed by 1.3196 (76.4% retracement of 1.3298 to 1.2865 decline). Initial support is located at 118.98 (Feb 16 low) followed by 118.32 (50% retracement of the 114.43 to 122.20 advance). Initial resistance is now at 120.79 (Feb 15 high) followed by 121.37 (Feb 14 high).
Initial support at 1.9402 (Feb 13 low) followed by 1.9317 (Jan 11 corrective low/ 1.9295 trendline). Initial resistance is now at 1.9679 (Feb 15 high) followed by 1.9751 (61.8% of 1.9917-1.9482, 1.9749 id Feb 2 high).
- Australian Dollar – 0.7865
Initial support at 0.7824 (Feb 15 low) followed by 0.7787 (Feb 14 low). Initial resistance is now at 0.7940 (Jan 23 reaction high) followed by 0.7982 (Jan 3 trend high). Initial support at 657.30 (Feb 9 low) followed by 648.00 (Feb 8 low). Initial resistance is now at 673.50 (Feb 19 trend high) followed by 676.35 (Jul 17 reaction high) Forex trading involves substantial risk of loss, and may not be suitable for everyone. 
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