Easy Forex Daily Forex Report 11-07-2012

FOREX Daily Outlook by Easy-Forex.com

China Trade Balance Show Weakening Imports

U.S. Dollar Trading (USD) the
EUR/USD was sold to fresh lows overnight as the German constitutional court
said the process of reviewing Germany’s role in the new ESM could take up to 3
months. There were various official responses hoping the decision came quickly
as the markets will not wait. US Stocks moved
lower on Chinese import declines indicating the world’s second largest domestic
economy was slowing faster than expected. Looking ahead, May
Trade Balance forecast at -48.5bn vs. -50.1bn previously. FOMC Minutes from
June Meeting released.

The Euro (EUR) the German news
added to an already shaky sentiment and a small relief rally was reversed in
Europe down to 1.2225 before stabilizing at 1.2250. The EUR/JPY is on a steady
downward trend falling to Y97 and is concerning to Japanese Official worried
about exports to Europe. Investors are hoping for a quick agreement from EU
members for the implementation of the ESM so that Spanish banks and Bonds may
be supported.  The Sterling (GBP) Economic
data in the UK was stronger than expected but weak US stocks meant little fresh
direction for GBP/USD. EUR/GBP managed to fall below 0.7900 but there was little
follow through.
Looking ahead, German CPI is forecast at -0.1% in
June m/m.

The Japanese Yen (JPY) USD/JPY moved lower
below Y79.50 finding support at Y79.30. More action was seen on the Yen crosses
but most were relatively contained and we are now looking to the BOJ meeting on
Thursday for the next catalyst. Australian Dollar (AUD) the
AUD/USD shrugged off weak Chinese data to rally in Europe to 1.0240 but when
the EUR/USD fell the AUD/USD was dragged back below 1.0200 finishing weak near
1.0180 support.
Looking ahead, no economic data Wednesday.

Oil & Gold (XAU) XAU/USD reversed
hard from the $1600 level falling to $1565 before stabilizing in a technically
weak move for the precious metal. OIL/USD was under pressure
for most of the day as the Norway strike and weak Chinese data inspired fresh
selling. Support
was found at the Key $84 level.

Pairs to watch

OIL/USD Rally to resume?

EUR/USD Oversold is their room for a relief rally?

TECHNICAL COMMENTARY

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