 Current Rates |
|
|
FOMC decide to keep interest rate on hold, with comments indicating a future rate cut. Japanese Trade Balance due for release. CURRENCY TRADING SUMMARY – 22 MARCH 07 (23:30GMT)
- U.S. Dollar Trading (USD) weakened against a basket of currencies. With the FOMC interest rate decision left unchanged at 5.25%. Although this was largely expected by economists it was dovish comments post announcement that generated Dollar weakness. With the removal of the word ‘firming’, statements indicated that the Fed had accepted the slowing of the US Economy and could possibly address a rate cut as early their next meeting. In US share markets, the NASDAQ rose by 47.71 points (1.98%) whilst the Dow Jones also rose by 159.42 (1.30%). Crude Oil also rose by US$0.43 a barrel to US$60.04. Looking ahead initial jobless claims will be mad pubic with markets expecting a figure 323k higher then the previous 318k.
- The Euro (EUR) strengthened against the USD reaching two year highs, on the back of dovish comments made by the Federal Reserve in yesterdays interest rate announcement. It was the Euro that enjoyed the rally more than any other currency as the market expects more EZ interest rate hikes this year from the current 3.75%. Overall, the Euro traded with a range of a low 1.3291 and a high of 1.3390 before closing at 1.3383 in the New York session.
- The Japanese Yen (JPY) was the least volatile currency on the back of Fed interest rate announcement. Overall the JPY traded with a low of 117.15 and a high of 117.95 before closing at 117.59. Looking ahead the Trade balance out of Japan is scheduled for release today with markets expecting a figure 700 bln. UPDATE: Trade Balance at 979bln
- The Sterling (GBP) added to previous day gains despite the publication of the BoE MPC minutes revealing an 8 to 1 vote at the previous meeting to keep interest rate unchanged. Overall, the GBP traded with a range of a low 1.9565 and a high of 1.9692 before closing the day 1.9676 in the New York session.
- The Australian Dollar (AUD) continues to look bullish, as Fed reserve comments indicated a possible rate cut whilst speculation circles a RBA hike in the near term. Overall, the AUD traded with a range of a low 0.8002 and a high 0.8080 before closing the New York session at 0.8079 (near day highs).
- The Turkish Lira (TRY) saw Turkish stocks rise on strong stock hike in the US markets yesterday and the European market today. The Lira softened slightly against the USD to 1.3940 while investors were waiting for the Fed rate to take new positions.
- Gold (XAU) rose by US$1.00 to US$660.00 an ounce, before rising a further US$2.40 of market.
TECHNICAL COMMENTARY | Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 | | EUR/USD | 1.3187 | 1.3270 | 1.3395 | 1.3412 | 1.3481 | | USD/JPY | 116.51 | 117.16 | 117.45 | 118.04 | 118.50 | | GBP/USD | 1.9431 | 1.9555 | 1.9685 | 1.9694 | 1.9749 | | AUD/USD | 0.7876 | 0.7943 | 0.8065 | 0.8085 | 0.8100 | | XAU/USD | 646.20 | 652.40 | 664.50 | 664.25 | 667.61 |
Initial support at 1.3270 (Mar 20 reaction low) followed by 1.3187 (Former resistance of Mar 7 low). Initial resistance is now located at 1.3412 (1.2865+(0.618 of 1.2483 – 1.3368) followed by 1.3481 (Mar 11, 2005 reaction high) Initial support is located at 117.16 (Mar 21 low) followed by 116.51 (Mar 16 low). Initial resistance is now at 118.04 (Mar 20 high) followed by 118.50 (Mar 12 high) Initial support at 1.9555 (Mar 21 reaction low) followed by 1.9431 (Mar 20 low). Initial resistance is now at 1.9694 (Mar 21 high) followed by 1.9749 (Feb 2 reaction high) - Australian Dollar – 0.8065
Initial support a 0.7943 (Mar 19 low) followed by 0.7876 (Mar 16 low). Initial resistance is now at 0.8085 (Mar 21 trend high) followed by 0.8100 (psychological round number) Initial support at 652.40 (Mar 19 low) followed by 646.20 (Mar 16 low). Initial resistance is now at 664.25 (Mar 2 high) followed by 667.61 (61.8% retracement of the 689.00 to 633.00 decline) Forex trading involves substantial risk of loss, and may not be suitable for everyone. 
Click here to visit Easy-Forex.com
+
)
|
|
Back to Archive
|
|
|
| This article provides an overview of the factors affecting the the leading currency pair: Euro-Dollar exchange, commonly expressed as EUR/USD. The Euro to Dollar exchange rate is the
price at which the world demand for US Dollar equals the world supply for Euro. Regardless of geographical origin, a rise in the world demand for Euros leads to an appreciation of the Euro. |
|
|
Technical analysis is built on three essential principles:
1. Market action discounts everything This means that the actual price is a reflection of everything that is known to the market that could affect it, for example,
supply and demand, political factors and market sentiment. The pure technical analyst is only concerned with price movements, not with the reasons for any changes.
|
|
|
