 Current Rates |
|
|
USD recovers as AUD remains bullish, strong UK Retail sales. Euro zone scheduled to release Current Account and Existing Home Sales out of US CURRENCY TRADING SUMMARY – 23 MARCH 07 (23:30GMT)
- U.S. Dollar Trading (USD) recovered on Thursday, recouping some the previous days losses. This was attributed to the fact that investors were more inclined to re-enter risky trades as the Federal Reserve moving away from the bias of raising interest rates. In US share markets, the NASDAQ dropped by 4.18 points (-0.17%) whilst the Dow Jones rose by 13.62 points (0.11%). Crude Oil rose by a further US$0.25 a barrel to US$61.94. Looking ahead, Existing Home Sales is out of the US with markets expected 6.35 mil slightly down on the previous 6.46 mil.
- The Euro (EUR) surrendered its gains easing 0.23% from two year highs of 1.3411 during the Asian session of trading. The slide in the Euro was helped by the Trade balance coming in worse than expected at -7.8 bln where markets were expecting a figure of 1.2 bln. Overall, the Euro traded with a low of 1.3311 and a high of 1.3412 before closing at 1.3331 in the New York session. Looking ahead, the Euro zone Current Account is set for release today with the previous being a figure of 2.3 bln.
- The Japanese Yen (JPY) weakened against the USD by 0.23%. Despite a strong Trade Balance figure of 979 bln being released for the month of Feb. The JPY also suffered also on the back of the funding of carry trades. Overall, the JPY traded with a low of 117.25 and a high of 118.32 before closing the day at 118.15 in the New York session.
- The Sterling (GBP) strengthened on the back of a strong retail sales figure with figure being released at 1.4% (Forecast: 0.7%; Previous: -1.5%R) before surrendering its day gains. Overall the Sterling traded with a low of 1.9613 and a high of 1.9726 before closing at 1.9650 in the New York session.
- The Australian Dollar (AUD) remained steady to close the day relatively unchanged. Overall, the AUD traded with a range of a low 0.8057 and a high 0.8092 before closing at 0.8065.
- The Turkish Lira (TRY) strengthened on the back of the Istanbul stock exchange rising by 1.93%. As a result the Lira was up 0.8% against the USD.
- Gold (XAU) remained steady for the majority of the day before strengthening by $4.20 an ounce to US$664.20.
TECHNICAL COMMENTARY | Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 | | EUR/USD | 1.3187 | 1.3270 | 1.3330 | 1.3412 | 1.3481 | | USD/JPY | 116.51 | 117.16 | 118.10 | 118.32 | 118.50 | | GBP/USD | 1.9431 | 1.9555 | 1.9640 | 1.9728 | 1.9749 | | AUD/USD | 0.7876 | 0.7943 | 0.8065 | 0.8095 | 0.8100 | | XAU/USD | 646.20 | 652.40 | 664.10 | 666.92 | 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 118.32 (Mar 22 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 1.9728 (Mar 22 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 0.8095 (Mar 22 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 666.92 (Mar 22 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.
|
|
|
