U.S. Dollar Trading (USD) weak Chinese Trade Data on Friday led to risk off trading during the Asian and European Trading sessions before reversing higher in the US session on rumors China may do more to support their slowing economy. Over the Weekend no China announcements have disappointed the bulls but so far the selling has been only slight in Asian Monday. Looking ahead, No Economic Data today.
The Euro (EUR) the EUR/USD was under pressure for most of the day down to 1.2240 before staging a late session US rally. The major has been capped at 1.2300 so far in Asia and we are seen some downside pressure with weekend comments from BOE King that ‘no obvious end in sight’ for the Euro Crisis. This negativity was compounded by the Vice Chancellor of Germany comments that he was disappointed with the pace of Greek Reforms. With a light data week and many still on holidays in the Northern hemisphere range trading is expected. The Sterling (GBP) what started as a weak day for the GBP/USD with the uptrend under pressure after 1.5600 was broken in the European session turned into a bullish day by the US close. The sharp reversal from 1.5580 lows saw 1.5700 tested for the first time in the week. EUR/GBP fell for most of the day down below 0.7850 and providing another avenue of support for the Pound. Looking ahead, No Major Data today.
The Japanese Yen (JPY) the USD/JPY is under pressure from the Yen cross selling with EUR/JPY back under Y96 during Friday trade. Strong USD/JPY support at Y78 is holding for now and we expect more range trading while markets are thin and data is scarce this week. Australian Dollar (AUD) the AUD/USD was hit hard by the Chinese data misses but support was found at 1.0500 and we later reversed on Rumors of a weekend RRR Rate Cut from China. With nothing announced we have seen the AUD/USD slightly pressured in Asia today but it’s not moving quickly with quiet markets.UPDATE Q2 Japanese GDP at 0.3% vs. 1.2% Q/Q previously.
Oil & Gold (XAU) XAU/USD finally pushed above $1620 after stalling for most of the week at the key $1618 resistance. OIL/USD dipped to $92 on Chinese slowdown reports before reversing back above $93 on fresh Chinese Stimulus talks.
Pairs to watch
XAU/USD to test multi month resistance at $1633?
EUR/USD Range Trading 1.2200-1.2400 while we wait for fresh direction?
China Rate Cute Rumors Helps Rally
U.S. Dollar Trading (USD) weak
Chinese Trade Data on Friday led to risk off trading during the Asian and
European Trading sessions before reversing higher in the US session on rumors
China may do more to support their slowing economy. Over the Weekend no China
announcements have disappointed the bulls but so far the selling has been only
slight in Asian Monday. Looking ahead, No Economic Data today.
The Euro (EUR) the EUR/USD was
under pressure for most of the day down to 1.2240 before staging a late session
US rally. The major has been capped at 1.2300 so far in Asia and we are seen
some downside pressure with weekend comments from BOE King that ‘no obvious end
in sight’ for the Euro Crisis. This negativity was compounded by the Vice
Chancellor of Germany comments that he was disappointed with the pace of Greek
Reforms. With a light data week and many still on holidays in the Northern
hemisphere range trading is expected. The Sterling (GBP) what started as a
weak day for the GBP/USD with the uptrend under pressure after 1.5600 was broken
in the European session turned into a bullish day by the US close. The sharp
reversal from 1.5580 lows saw 1.5700 tested for the first time in the week.
EUR/GBP fell for most of the day down below 0.7850 and providing another avenue
of support for the Pound. Looking ahead, No Major Data today.
The Japanese Yen (JPY) the USD/JPY is
under pressure from the Yen cross selling with EUR/JPY back under Y96 during
Friday trade. Strong USD/JPY support at Y78 is holding for now and we expect
more range trading while markets are thin and data is scarce this week. Australian Dollar (AUD) the
AUD/USD was hit hard by the Chinese data misses but support was found at 1.0500
and we later reversed on Rumors of a weekend RRR Rate Cut from China. With
nothing announced we have seen the AUD/USD slightly pressured in Asia today but
it’s not moving quickly with quiet markets. UPDATE Q2 Japanese
GDP at 0.3% vs. 1.2% Q/Q previously.
Oil & Gold (XAU)
XAU/USD finally pushed above $1620 after stalling for most of the week at the
key $1618 resistance. OIL/USD dipped to
$92 on Chinese slowdown reports before reversing back above $93 on fresh Chinese
Stimulus talks.
Pairs to watch
XAU/USD to test multi month resistance at $1633?
EUR/USD Range Trading 1.2200-1.2400 while we wait
for fresh direction?
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2215
1.2250
1.2285
1.2325
1.2380
USD/JPY
77.90
78.05
78.30
78.50
79.05
GBP/USD
1.5600
1.5645
1.5670
1.5700
1.5730
AUD/USD
1.0480
1.0530
1.0560
1.0610
1.0635
XAU/USD
1600.00
1613
1623
1630
1640
OIL/USD
89.45
91.50
93.50
94.60
96.00
By Anthony Darvall (TonyD)
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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