Easy Forex Daily Forex Report 10-07-2012

FOREX Daily Outlook by Easy-Forex.com

EUR/USD Rebounds but Sentiment Weak

U.S. Dollar Trading (USD) a quiet
start to the week encouraged some profit taking and consolidation on most FX
pairs. The
USD was slightly weak on the day but the trend remains higher. Some FOMC
members yesterday suggested that the FED should do more to help the economy but
without specifics the market barely reacted. Focus remains on the Eurozone with
yields remaining stubbornly high on Spanish and Italian debt. Looking ahead, No
Economic Data Today.

The Euro (EUR) some supportive
comments from ECB members and a lack of follow through on the downside prompted
profit taking on Monday with the single currency closing above 1.2300. The
outlook is still negative while bond yields remain high and the EU members
ratify the new bailout and specifics of just how it will work are ironed out.
Euro Crosses are receiving attention with EUR/GBP and EUR/AUD still oversold
and some speculators are trying to pick the bottom. The Sterling (GBP) tracked
the EUR/USD higher back above 1.5500 to 1.5530 resistances. Last week’s BOE
moves have been priced in but there are still some downside risks. EUR/GBP targets
0.7900 but could bounce if the market changes mood on the EUR/USD. Also ahead, May Industrial
Output forecast at -0.2% vs. 0%. May Trade Balance forecast at -9bn vs. -10.1bn
previously.

The Japanese Yen (JPY) the USD/JPY kept to
a very tight 25 pip range as the focus was on the other majors but some Yen
crosses did grind higher. Traders are looking elsewhere for more volatility at
the moment.
Australian Dollar (AUD) the AUD/USD is the main risk
currency in play this week with the daily China data releases and close scrutiny
of the emerging economic powerhouse. AUD/USD found support
at 1.0160 and grinded back above 1.0210. Looking ahead, June Consumer
Confidence previously at 40.7. Also
Chinese Trade Balance forecast at 21bn vs. 18.7bn previously

Oil & Gold (XAU) XAU/USD bounced recovering
some of the losses from the previous 2 days back to $1590. OIL/USD fell
sharply after Norway announced the strike was over and this should create some
downside pressure on both Brent and Crude Oil. Key Support at $84.

Pairs to watch

OIL/USD will $84 hold?

EUR/USD Can the recovery rally extend for 2 days?

TECHNICAL COMMENTARY

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