Soon after the stock market reopened after the credit downgrade, there were some answers that were being expected from the government about the credit downgrade. The most important concern was whether or not this decision could ward off the investors from buying the US government debt and also increase the cost of borrowing money. Will there be an increase in the interest rates on personal loans? Read on to get some of your answers to the most common questions after the credit downgrade.

• What does the credit downgrade actually mean?This credit downgrade by the Standard & Poor’s is nothing but a word of alert to the bond buyers that the chance of not getting their money back has increased slightly. Usually, it has seen that downgrades lead to higher borrowing costs for the issuing country (here USA) as the investors demand a higher interest rate since they’re already taking a huge risk.
• Does this mean that the interest rates will rise unnaturally?The 10-year Treasury note is deemed to be the basis of all the interest rates and thus higher rates on all the other long term US debt could lead to a direct rise in the borrowing costs of the government. This means that the interest rates on the mortgage loans, auto loans and debt consolidation loans and therefore the people who are already facing debt problems will probably be facing more as they may not get loans at favorable interest rates that are within your budget.
• What do the other rating agencies say about this debt downgrade?Though the Standard & Poor’s has mentioned the result about the credit downgrade, the other two credit rating agencies haven’t taken action as of yet. Moody’s Investor Service is of the opinion that it may downgrade the US credit rating but that the Treasury Securities are still of the gold standard and they feel that the step taken by the S&P but that this is not the end of the process.

Though the analysts are of the opinion that the credit downgrade is a historical decision for the US people as this is the first time that they’ve been slashed off their credit rating, yet there are some particular financial decisions that can be taken to survive this situation. If you’re someone in debt problems, you must build an emergency cushion on which you can fall back when in need.

Gold as Investment

Gold is a very popular precious metal and something which people love to invest it and it has been this way for hundreds of years. Gold is considered to be a sort of safe haven, so to speak, which prevents people from economic, social and political disasters which can otherwise affect currencies. Market devaluation, inflation as well as social unrest seem to have no effect on the ever increasing value of gold. Unlike any bond in existence today there is no interest that needs to be paid and you receive none but it does not suddenly become worthless as well. In the free market the value of gold rises and also falls but the overall trend of gold has always been on the rise owing to its demand and somewhat always limited supply which is why it is considered a very safe investment.

The price of gold is fixed in GBP (pound sterling), USD (United States dollars) and also EUR (Euros). The fixing of gold prices took place twice every day at the offices of the famous N M Rothschild & Sons located in St Swithin’s Lane but starting from the 5th of May 2004 the price fixing of gold takes place over the telephone. Later in 2004 the company announced that it was withdrawing from their gold trading duties at London Gold Price Fixing which was then taken over by Barclays Bank from the 7th of June 2004 but the chairmanship of this meeting is now rotated each year. On the 21st of January 1980 the price of gold had reached $850 which was a figure that was only overtaken later on the 3rd of January 2008. One of the explanations given for the increase in the price of gold today is that it is adjusting for the previous 26 years of inflation. However, the overall consequences of this adjustment in the prices of gold will mean the decrease in the net worth of the American economy which will directly affect the price of energy and food.

The Price of Gold and Currency

The prices of gold today is partly driven by the technology sector which has an insatiable hunger for gold and which drives the demand up while the supply remains at a constant. Under the gold standard citizens are permitted to easily exchange their currency for gold. According to the gold standard the price of gold will equal the supply of currency which is in circulation and then divided by the overall supply of that country’s gold bullion. However, the gold standard is no longer used as one of the only major factors for the circulation of currency.

Dollar strengthens helped by a healing US economy

•  The US dollar rose against a basket of currencies today as economic data continue to spur investors’ optimism for a US economy that is improving in a fast pace. FOMC meeting minutes were released on Tuesday saying that the US recovery is becoming self-sustaining but its pace is hurt by the stubborn unemployment and at this stage no adjustments will be made in the Fed’s asset purchase program. With liquidity back to normal today, world equities falling and commodity prices correcting recent gains the market eyes this week’s jobs data hoping this will give a clearer insight.
• The euro dipped against the dollar and fell as low as 1.3257 from yesterday’s high of 1.3432. The single currency also fell versus the Japanese Yen and the sterling falling as low as 108.70 and 0.8522 respectively. 
• Against the Swiss franc, the dollar continues its upward direction moving further away its recent record low level at 0.93 and today rising to 0.9518. The dollar edged lower against the Japanese Yen, after recovering losses since the start of the new year and the pair fell to 81.88 from 82.27 yen today.   
• Commodity prices edged lower on Wednesday stepping off recent record high levels weighing on the Australian dollar. The Aussie extends its losses today against the dollar made in the beginning of the week due to massive floods in the Northeast part of the country that hurt coal exports and wheat production. Australia’s currency plummeted against today’s stronger dollar falling below parity at 0.9998 from 1.0256 dollars.
• Gold fell today to 1378.75 dollars an ounce as hopes for a US recovery rose and demand for safe-haven assets lowered. The precious metal is under pressure also due to the stronger dollar as it becomes a more expensive bet for non-US currency holders. 

Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3330 with a preference to enter into Short positions at 1.3320
• § The USDJPY pivot point is at 82.30 with a preference to enter Short positions at 82.25

Today’s calendar and market movers:

• § Europe’s Producer Price Index in December is forecasted to gain 0.3%
• § US Employment change in December is forecasted to rise to 100K
• § US ISM Non-Manufacturing in December is forecasted to rise to 55.6

Equity Markets:

 US equities were mixed on Tuesday with the S&P500 down -0.13% and the DJIA up 0.18%. The European bourses are mixed as well with the FTSE trading up 1.93% and the DAX and the CAC trading down -0.21% and 0.39% respectively. The NIKKEI and the HSI at the time of writing are trading down 0.17% and up 0.08% respectively.

Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. This report is provided by Easy-Forex® for informative purposes only. In no way it is a recommendation by Easy-Forex® for you to engage in any trade. It is your sole responsibility and you will have no claims with regards to this report against Easy-Forex®. If you do not agree to this, you are strongly advised not to use this report. Hence, Easy-Forex® shall not be held responsible for any outcome of trading decisions, in regards with this report or similar reports.

 

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

U.S. Dollar Trading (USD) was sold on weaker than expected US data with December Conference Board Consumer confidence slumping to 52.5 vs. 54.3 previously and Case Shiller HP falling -0.8% y/y in October. In US stocks, DJIA +9 points closing at 11585, S&P +1 points closing at 1259 and NASDAQ +4 points closing at 2666. Looking Ahead, Weekly Jobless Claims are forecast at 415k vs. 420k previously. Also released, Weekly Crude Oil Inventories at -2.8m vs. -5.3m previously.

The Euro (EUR) The Euro did well given the weak US data and strong stock environment reclaiming the 1.3200 level. The bears have failed to break 1.3000 over the last two weeks and are in danger of being caught short if attention turns to dollar weakness in coming sessions. EUR/USD traded with a low of 1.3083 and a high of 1.3241 before closing at 1.3225.

The Japanese Yen (JPY) the major fell below Y82 despite protests from Japanese officials about the recent strength in the Yen. Crosses remained stable though and could provide support if stock markets continue to rally. Overall the USDJPY traded with a low of 81.59 and a high of 82.40 before closing the day around 81.65 in the New York session.       

The Sterling (GBP) bounced with the rest of the majors but is struggling to sustain gains as traders prefers other risk currencies to invest in. EUR/GBP is stable above 0.8500 and is a good cross to watch for general GBP strength or weakness. Overall the GBP/USD traded with a low of 1.5350 and a high of 1.5521 before closing the day at 1.5490 in the New York session.

The Australian Dollar (AUD) Traded fresh post float highs above 1.0180 with strong US investor sentiment and weak USD combining to push the commodity currency higher. Crosses are also remaining near record highs with the Aussie the most favored investment in the market lately. Overall the AUD/USD traded with a low of 1.0088 and a high of 1.0186 before closing the US session at 1.0170.

Oil & Gold (XAU) pushed higher grinding above $1410. Overall trading with a low of USD$1400 and high of USD $1414 before ending the New York session at USD$1411 an ounce. Oil Consolidated recent gains above $90 a barrel. WTI Oil Closed -$0.20 at $91.10 a barrel.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.3055	1.3073	1.3220	1.3277	1.3359
USD/JPY	80.54	81.23	81.65	83.17	84.12
GBP/USD	1.5297	1.5345	1.5500	1.5512	1.5568
AUD/USD	0.9863	1.0040	1.0180	1.0200	1.0300
XAU/USD	1372.00	1382	1411	1414	1431
OIL/USD	89.00	90.00	91.10	92.50	95.00

Euro – 1.3220

Initial support at 1.3073 (Dec 27 low) followed by 1.3055 (Dec 23 low). Initial resistance is now located at 1.3277 (50% retrace of 1.3499-1.3055) followed by 1.3359 (Dec 17 high)

Yen – 81.65

Initial support is located at 81.23 (76.4% retrace of 80.22-84.51) followed by 80.54 (Nov 9 low). Initial resistance is now at 83.17 (Dec 24 high) followed by 84.12 (Dec 20 high).

Pound – 1.5500

Initial support at 1.5345 (Sep 8 Low) followed by 1.5297 (Sep 7 low). Initial resistance is now at 1.5512 (Dec 28 high) followed by 1.5568 (Dec 21 high).

Australian Dollar – 1.0180

Initial support at 1.0040 (Dec 28 low) followed by the 0.9863 (Dec 20 low). Initial resistance is now at 1.0200 (Round Number) followed by 1.0300 (Round Number Support).

Gold – 1411

Initial support at 1382 (Dec 28 low) followed by 1372 (Dec 23 low). Initial resistance is now at 1414 (76.4% retrace of 1431.25-1361.39) followed by 1431 (Dec 7 High).

Oil – 91.10

Initial support at 90.00 (Intraday Support) followed by 89.00 (Intraday Support). Initial resistance is now at 92.50 (Intraday Resistance) followed by 95.00 (Intraday Resistance).

Written by Anthony Darvall

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

Dollar is steady ahead of economic data

•  The dollar is stronger on Thursday’s currency markets after Q3 Gross Domestic Product was revised slightly higher 2.6% from a previous 1.7% on Wednesday but lower than markets expectation of a 2.8% increase. Data also showed Existing Home Sales increased to 4.68M in November from a previous 4.43M. Today Jobless Claims, Durable Goods orders and New Home Sales will give investors a further insight about US fragile recovery.        
•  The euro bounced in Asia supported by demand in the region but still remains shaky as euro zone debt problems are expected to deepen further in the New Year. EUR/USD rose to 1.3150 today but still remains below the 1.32 level. The euro zone is threatened by rating agencies Moody’s and Fitch that put Portugal and Greece sovereign debt on review for a possible downgrade further weighing on the single currency. On Wednesday, China announced that the country is willing to help euro zone escape its debt crisis offering to buy a significant amount of Portugal’s debt but failing to prevent the downward trend of the euro.
•  Against the Swiss franc, the euro hit a fresh new low on Wednesday at 1.2437. The pair was last traded at 1.2489. The euro also fell against the Japanese Yen today hitting a three-week low at 108.91 from 109.61 yen. Against the Japanese Yen, the US dollar weakened on Thursday falling to 83.05 from 83.56 helped by heightened risk aversion in an end of year thin trading conditions.
•  The Australian dollar rallied against the US dollar on Thursday hitting a six-week high at 1.0036 breaking above parity level. It appears that the market is optimistic about Australia’s economic outlook helped by a strong employment sector and rising commodity prices. In contrast, Australia’s neighbor, New Zealand disappointed investors on Wednesday after data showed Gross Domestic Product fell 0.2% for the first time in six months reducing the possibility of a rate hike in the near future. Kiwi slid against the dollar on Wednesday as low as 0.7383 but then recovered to trade at 0.7471 on Thursday.

 Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3175 with a preference to enter into Short positions at 1.3165
• § The USDJPY pivot point is at 83.45 with a preference to enter Short positions at 83.40

Today’s calendar and market movers:

• § US Durable Goods Orders in November is forecasted at to drop 0.5%
• § Canada Gross Domestic Product in October is forecasted to gain 0.3%
• § US Initial Jobless Claims is forecasted to be unchanged at 420K

 Equity Markets:

 US equities closed positive on Tuesday with the S&P500 up 0.34% and the DJIA up 0.23%. The European bourses were mixed with the FTSE traded up 0.53%, the DAX unchanged and the CAC traded down 0.20%. The HSI at the time of writing is trading up 0.19% and Nikkei is closed on the Japanese Emperor’s birthday.

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

Euro steadied ahead of the EU summit

• The dollar paused its rally on Thursday as US Treasury prices edged higher. On Wednesday, the US dollar rose against a basket of currencies supported by rising US Treasury yields. Jobless Claims and Manufacturing index are expected later today.
• The euro appears steadied on Thursday’s European trade after it plummeted on Wednesday weighed by rating agency Moody’s which said it was considering downgrading Spain’s sovereign debt. EU leaders are discussing a persistent debt crisis and possible methods to prevent a euro zone debt contagion in an end of year meeting on Thursday and Friday. The single currency is trading in a tight range between 1.3200-1.3233 versus the dollar well below a three week high of 1.3497 hit on Tuesday. The pair is currently trading at 1.3233 dollars.
• Higher US Treasury yields pushed the dollar up to three-month highs versus the Japanese Yen on Wednesday hitting 84.50. USD/JPY is now trading at 84.22 yen. The Swiss franc fell on Thursday ahead of Switzerland’s interest rate decision.

Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3275 with a preference to enter into Short positions at 1.3265
• § The USDJPY pivot point is at 83.90 with a preference to enter Long positions at 83.95

Today’s calendar and market movers:

• § Switzerland’s Interest Rate decision
• § UK Retail Sales in November is forecasted at 0.5%
• § US Initial Jobless Claims is forecasted at 425K
• § US Fed Manufacturing Index for December is forecasted at 14.1

Equity Markets:

US equities closed down on Wednesday with the S&P500 at -0.51% and the DJIA down at -0.17%. The European bourses traded down as well with the FTSE traded down -0.51% the DAX and the CAC down at -0.16% and -0.58% respectively. The NIKKEI and the HSI at the time of writing is trading at 0.01% and -0.58% respectively.

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

U.S. Dollar Trading (USD) with little movement seen in the markets overnight the Dollar finished roughly where it began against most pairs. Weekly Jobless Claims were strong at 421k vs. 435k forecast. In US stocks, DJIA -2 points closing at 11370, S&P +4 points closing at 1233 and NASDAQ +7 points closing at 2616. Looking ahead, November Trade Balance is forecast at -43.5bn vs. -44bn previously.

The Euro (EUR) fell from day highs above 1.3300 after Ireland was downgraded by Fitch and Standard & Poors. The market slid below 1.3200 but when US stocks remained supported by strong data the Euro bounced back to the mid 1.3200 region. EUR/USD traded with a low of 1.3163 and a high of 1.3324 before closing at 1.3240. Looking ahead, November WPI is previously at -0.3%.

The Japanese Yen (JPY) struggled to push above multimonth resistance at Y84.40 and spent most of the day with a slight downside bias. Support was found at Y83.50. Q3 GDP at 1.1% vs. 1.0% forecast y/y.  Overall the USDJPY traded with a low of 83.50 and a high of 84.13 before closing the day around 83.70 in the New York session.

The Sterling (GBP) The BoE meeting was a non event with the central bank holding at 0.5% as expected and leaving the Asset Purchase Program at 200bn. Cable fell tracking the Euro lower but found support at 1.5700, finishing in the middle of the recent range. Overall the GBP/USD traded with a low of 1.5710 and a high of 1.5844 before closing the day at 1.5765 in the New York session. Looking ahead, November PPI forecast at 0.4% vs. 0.6% previously.

The Australian Dollar (AUD) the Aussie jumped on very strong November Jobs Numbers at +54k vs. +20k  forecast. The Unemployment rate fell to 5.2% vs. 5.4% previously. AUD/USD found solid resistance at 0.9880 and eased back to 0.9820. Overall the AUD/USD traded with a low of 0.9778 and a high of 0.9886 before closing the US session at 0.9840.

Oil & Gold (XAU) edged higher orbiting around the $1390 level. Overall trading with a low of USD$1380 and high of USD $1394 before ending the New York session at USD$1388 an ounce. Traded in a 200 point range but finished only slightly higher. WTI Oil Closed +$0.29 at $88.57 a barrel.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.2969	1.3165	1.3245	1.3323	1.3401
USD/JPY	82.32	83.46	83.80	84.41	85.40
GBP/USD	1.5581	1.5669	1.5770	1.5841	1.5965
AUD/USD	0.9625	0.9739	0.9855	0.9939	1.000
XAU/USD	1362.00	1371	1389	1404	1438
OIL/USD	87.0	88.00	88.75	90.00	91.00

Euro – 1.3245

Initial support at 1.3165 (Dec 9 low) followed by 1.2969 (Nov 30 low). Initial resistance is now located at 1.3323 (Dec 9 high) followed by 1.3401 (Dec 7 high)

Yen – 83.80

Initial support is located at 83.46 (Dec 8 high) followed by 82.32 (50% retrace of 80.22-84.41). Initial resistance is now at 84.41 (Nov 29 high) followed by 85.40 (Sept 24 high).

Pound – 1.5770

Initial support at 1.5669 (Dec 8 Low) followed by 1.5581 (Dec 3 low). Initial resistance is now at 1.5841 (Dec 9 high) followed by 1.5965 (Nov 23 high).

Australian Dollar – 0.9855

Initial support at 0.9739 (Dec 3 low) followed by the 0.9625 (Dec 2 low). Initial resistance is now at 0.9939 (Dec 3 high) followed by 1.0000 (Psychological Resistance).

Gold – 1389

Initial support at 1371 (Dec 3 low) followed by 1362 (Nov 30 low). Initial resistance is now at 1404 (Dec 8 high) followed by 1438 (1329.70 plus 1315.45-1424.60).

Oil – 88.40

Initial support at 88.00 (Intraday Support) followed by 87.00 (Intraday Support). Initial resistance is now at 90.00 (Intraday Resistance) followed by 91.00 (Intraday Resistance).

Written by Anthony Darvall

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

U.S. Dollar Trading (USD) the Dollar was under pressure again last night as stock market’s rallied around the world for a second day. Weekly Jobless Claims jumped to 436k vs. 407k previously but the market was focused on strong performance of European bonds and US home sales data. October Pending Home Sale jumped 10.4% m/m.  In US stocks, DJIA +106 points closing at 11362, S&P +15 points closing at 1221 and NASDAQ +29 points closing at 2579. Looking ahead, November NonFarm Payrolls are forecast at 140k vs. 151k previously. The November Unemployment Rate forecast at 9.6% vs. 9.6% previously.

The Euro (EUR) was strong after talk in the market that the ECB was buying Portuguese bonds aggressively and the ECB announced it was delaying his exit from emergency liquidity after they held rates at 1.0%. EUR/USD traded with a low of 1.3059 and a high of 1.3249 before closing at 1.3206. Looking ahead, October Retail Sales are forecast at 0.2% vs. -0.2%.

The Japanese Yen (JPY) top out again and fell back below Y84 after the USD broadly weakened. Strong risk appetite helped the crosses to small gains however and the market will now wait for the US Nonfarm Payrolls tonight which usually produces a strong reaction on Yen crosses. Overall the USDJPY traded with a low of 83.47 and a high of 84.39 before closing the day around 83.80 in the New York session.

The Sterling (GBP) the cable resumed its aggressive volatility being sold hard at the start of the US session before bouncing with the risk on trading. EUR/GBP is recovering towards 0.8500. Overall the GBP/USD traded with a low of 1.5543 and a high of 1.5651 before closing the day at 1.5610 in the New York session. Looking ahead, November PMI Service 53 vs. 53.2.

The Australian Dollar (AUD) extended Wednesday’s rally back above 0.9700 and developing a buoyant feeling as commodities and stocks rally. Economic data however is weakening with October Retail sales falling -1.1% vs. 0.3% forecast m/m. Overall the AUD/USD traded with a low of 0.9621 and a high of 0.9781 before closing the US session at 0.9760.

Oil & Gold (XAU) tested $1400 but failed and reversing sharply. Overall trading with a low of USD$1382 and high of USD $1399 before ending the New York session at USD$1389 an ounce. Oil traded higher towards the $88 up nearly $5 this week. WTI Oil Closed +$1.21 at $87.96 a barrel.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.2830	1.2969	1.3205	1.3354	1.3634
USD/JPY	82.79	83.38	83.75	84.41	85.40
GBP/USD	1.5297	1.5485	1.5580	1.5647	1.5773
AUD/USD	0.9477	0.9537	0.9755	0.9818	0.9890
XAU/USD	1351.00	1362	1389	1410	1424
OIL/USD	85.0	87.00	87.45	88.00	90.00

Euro – 1.3205

Initial support at 1.2969 (Nov 29 low) followed by 1.2830 (76.4% retracement of 1.2588-1.4282). Initial resistance is now located at 1.3354 (Nov 29 high) followed by 1.3634 (Nov 23 high)

Yen – 83.75

Initial support is located at 83.38 (Dec 1 low) followed by 82.79 (Nov 23 low). Initial resistance is now at 85.41 (Oct 5 high) followed by 85.40 (Sept 24 high).

Pound – 1.5580

Initial support at 1.5485 (Nov 29 Low) followed by 1.5297 (Sep 7 low). Initial resistance is now at 1.5648 (Nov 29 high) followed by 1.5773 (Nov 26 high).

Australian Dollar – 0.9755

Initial support at 0.9537 (Dec 1 low) followed by the 0.9477 (50% retrace of 0.8771-1.0183). Initial resistance is now at 0.9818 (Nov 26 high) followed by 0.9890 (Nov 23 high).

Gold – 1389

Initial support at 1362 (Nov 30 low) followed by 1351 (Nov 26 low). Initial resistance is now at 1410 (Nov 12 high) followed by 1424 (Nov 9 high).

Oil – 87.45

Initial support at 87.00 (Intraday Support) followed by 85.00 (Intraday Support). Initial resistance is now at 88.00 (Intraday Resistance) followed by 90.00 (Intraday Resistance).

Written by Anthony Darvall

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

USD in a trading range as US observes Thanks Giving!

• The Dollar Traded quietly during yesterdays US market holiday. The majors traded inside recent ranges with little fresh news to move the markets beyond. Risk aversion took a small break during the day however as the Asian session begun risk aversion trickled back in the market once again pushing the EURUSD back to its lows.  In Asia the focus was on the Korean peninsula standoff which dampened appetite further. US stocks remained unchanged yesterday due to Bank Holiday for Thanks Giving.
• The Euro (EUR) was able to find support at the 1.3300 level with ECM Member Weber stating the Euro is a long term project and that it was possible to increase the size of the EU bailout fund. Euro zone Government Bonds continue to be under pressure with Spanish and Portugal yields rising. EUR/USD traded with a low of 1.3285 and a high of 1.3389 before closing at 1.3335. Looking ahead, German October Import Prices forecast at 0.1% vs. 0.3% previously.

Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3280 with a preference to enter into Long positions at 1.3290
• § The USDJPY pivot point is at 83.50 with a preference to enter Long positions at 83.90

Today’s calendar and market movers:

• § Switzerland KOF Indicator for November forecasted at 2.1
• § Canada Budget Balance for September is out with previous month -5.81 bio

Equity Markets:

• US equities were closed yesterday with a market holiday. The European bourses were positive with the FTSE up at 0.74% the DAX and the CAC closing up at 0.82% and at 0.34% respectively. The NIKKEI and the HSI at the time of writing is -0.4% and -0.98% respectively.

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard

U.S. Dollar Trading (USD) a very large successful GM IPO and positive developments regarding the Irish EU/IMF Bailout. The Mood change began in Asia with stocks then beginning a 24hour global stock market rally. November Philadelphia Fed jumped to 22 vs. 5 forecast. In US stocks, DJIA +173 points closing at 11181, S&P +18 points closing at 1196 and NASDAQ +38 points closing at 2514. Looking ahead, Fed Chief Bernanke Speaks.

The Euro (EUR) jumped higher on speculation Ireland would be forced to accept bailout funds. ECB member and Irish Central Bank Head Honohan said the expected Ireland to receive a loan worth tens of billions. EUR/USD traded with a low of 1.3540 and a high of 1.3669 before closing at 1.3640. Looking ahead, ECB President Trichet speaks today.

The Japanese Yen (JPY) popped higher on the very good US Philly Fed numbers to fresh month highs above Y83.80. The market is beginning to focus on the topside with improving US data and improving risk sentiment helping the Yen Crosses rally. Overall the USDJPY traded with a low of 83.08 and a high of 83.81 before closing the day around 83.55 in the New York session.

The Sterling (GBP) Solid economic data and risk on environment helped Cable rally back above the key 1.6000 level. GBP/JPY surge past Y134 as October Retail Sales jumped 0.5% m/m. The CBI November Industrial trends Survey improved to -15 from -28 previously. Overall the GBP/USD traded with a low of 1.5886 and a high of 1.6058 before closing the day at 1.6040 in the New York session.

The Australian Dollar (AUD) tracked the improvement in investor sentiment to reclaim 0.9900. AUD/JPY in particular was strong pushing above Y82.50. The market will be watching to see if the Aussie can resume its uptrend or whether parity will remain a short term barrier. Overall the AUD/USD traded with a low of 0.9805 and a high of 0.9908 before closing the US session at 0.9880.

Oil & Gold (XAU) Gold rallied sharply up $20 an ounce. Overall trading with a low of USD$1340 and high of USD $1363 before ending the New York session at USD$1360 an ounce. Oil jumped with most commodities testing $82 a barrel. WTI Oil Closed +$1.48 at $81.92 a barrel.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.3435	1.3448	1.3645	1.3825	1.4282
USD/JPY	81.66	82.40	83.55	83.99	85.40
GBP/USD	1.5762	1.5840	1.6045	1.6299	1.6458
AUD/USD	0.9542	0.9652	0.9895	1.0004	1.0212
XAU/USD	1315.00	1329	1359	1424	1500
OIL/USD	80.00	82.00	82.70	84.00	85.00

Euro – 1.3645

Initial support at 1.3448 (Nov 16 low) followed by 1.3435 (50% retrace of 1.2588-1.4282). Initial resistance is now located at 1.3825 (Nov 9 High) followed by 1.4282 (Nov 4 high)

Yen – 83.55

Initial support is located at 82.40 (Nov 15 low) followed by 81.66 (Nov 12 low). Initial resistance is now at 83.99 (Oct 5 high) followed by 85.40 (Sept 24 high).

Pound – 1.6045

Initial support at 1.5840 (Nov 16 Low) followed by 1.5762 (Oct 28 low). Initial resistance is now at 1.6299 (Nov 4 high) followed by 1.6458 (Jan 19 high).

Australian Dollar – 0.9895

Initial support at 0.9652 (Oct 27 low) followed by the 0.9542 (Oct 5 low). Initial resistance is now at 1.0004 (Nov 12 high) followed by 1.0183 (Nov 5 high).

Gold – 1359

Initial support at 1329 (Nov 16 low) followed by 1315 (Oct 22 low). Initial resistance is now at 1424 (Nov 9 high) followed by 1500 (Round Number).

Oil – 82.70

Initial support at 82.00 (Intraday Support) followed by 80.00 (Intraday Support). Initial resistance is now at 84.00 (Intraday Resistance) followed by 85.00 (Intraday Resistance).

Written by Anthony Darvall

Source: Easy Forex

Recommended Forex Brokers: AvaFX and Forex Yard