U.S. Dollar Trading (USD) another volatile and risky trading session on Friday with most markets touching new lows intraday. US stocks opened weak but were able to manage a weekend relief rally and helped lift other risk based markets higher. UoM Consumer Sentiment rose to a 5 year high at 84.9 vs. 83 forecast. Looking ahead, Bank Holiday for Veteran’s Day in US.
The Euro (EUR) found support under 1.2700 on Friday and closed at the psychological round number. The EUR/USD has been under pressure from weak stocks and mounting fears regarding Greece Bailout delays. On Monday we have the Eurogroup meeting regarding the troika report into Greece’s reforms and this will be reviewed before they decide to release the next tranche of money. The Sterling (GBP) ended the week on the back foot down at the 1.5900 level with risk aversion weighing and crosses failing to support. EUR/GBP remains close to the 0.8000 level but GBP/JPY has fallen to Y126 down from Y129 at the start of last week. Looking ahead, Eurogroup meeting.
The Japanese Yen (JPY) the Yen remained strong on Friday but the USD/JPY was able to lift off lows on the better economic data from the US. USD/JPY found support at Y79 and we closed at Y79.50. The outlook is for more range trading now that the topside resistance at Y80.40 held last week. Yen crosses are the main drag on the major and we are getting close to levels where Japanese Officials have become more vocal. Australian Dollar (AUD) strong Chinese economic data over the weekend is sure to support the AUD this week with it becoming clear China’s economy will have a soft landing. Further Chinese Stimulus is also on the cards with the change in leadership last week opening up the door for fresh ideas.Update China October Trade Balance at 32bn vs. 27.1bn forecast.
Oil & Gold (XAU) Gold performed well on Friday holding above $1730 in calm consolidation of the gains. OIL/USD dipped to new month lows near $84 before a sharp rebound above $86 into the weekend.
Greece
Troika Report Due
U.S. Dollar Trading (USD) another
volatile and risky trading session on Friday with most markets touching new
lows intraday. US stocks opened weak but were able to manage a weekend relief
rally and helped lift other risk based markets higher. UoM Consumer Sentiment
rose to a 5 year high at 84.9 vs. 83 forecast. Looking ahead, Bank
Holiday for Veteran’s Day in US.
The Euro (EUR) found support under
1.2700 on Friday and closed at the psychological round number. The EUR/USD has
been under pressure from weak stocks and mounting fears regarding Greece
Bailout delays. On Monday we have the Eurogroup meeting regarding the troika report
into Greece’s reforms and this will be reviewed before they decide to release
the next tranche of money. The Sterling (GBP) ended the week on
the back foot down at the 1.5900 level with risk aversion weighing and crosses
failing to support. EUR/GBP remains close to the 0.8000 level but GBP/JPY has
fallen to Y126 down from Y129 at the start of last week. Looking ahead, Eurogroup
meeting.
The Japanese Yen (JPY) the Yen remained strong
on Friday but the USD/JPY was able to lift off lows on the better economic data
from the US. USD/JPY found support at Y79 and we closed at Y79.50. The outlook
is for more range trading now that the topside resistance at Y80.40 held last
week. Yen crosses are the main drag on the major and we are getting close to
levels where Japanese Officials have become more vocal. Australian Dollar (AUD) strong
Chinese economic data over the weekend is sure to support the AUD this week
with it becoming clear China’s economy will have a soft landing. Further
Chinese Stimulus is also on the cards with the change in leadership last week
opening up the door for fresh ideas. Update China October Trade Balance
at 32bn vs. 27.1bn forecast.
Oil & Gold (XAU) Gold performed well
on Friday holding above $1730 in calm consolidation of the gains. OIL/USD
dipped to new month lows near $84 before a sharp rebound above $86 into the
weekend.
Pairs to watch
EUR/USD Greece progress to spark rally?
AUD/USD China Trade Data to encourage buyers?
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2561
1.2627
1.2720
1.2791
1.2848
USD/JPY
79.10
79.25
79.50
79.80
80.10
GBP/USD
1.5850
1.5882
1.5890
1.6020
1.6043
AUD/USD
1.0333
1.0365
1.0390
1.0435
1.0480
XAU/USD
1711.00
1720
1733
1742
1752
OIL/USD
84.10
85.00
86.00
88.00
90.00
By Anthony Darvall (TonyD)
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Click here to visit Easy-Forex.com
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