The Fusion Media Network:

Real-Time Quotes:

Home

Analysis

General Overview

Fundamental

Technical

Futures

Central Banks

Forex Brokers

Trading Tools

Crosses

Euro and Crude trade at record highs. AUD trades above 92 cents

By:

Easy Forex

2007-29-10

votes

View Comments (0)

Previous Analysis | Next Analysis

	Text Size
	Print
	Email
	Add a Comment

U.S. Dollar Trading (USD) eased further to end the week as markets pre-empt another rate cut from the Federal Reserve on October 31st. Poor data out of the U.S. gave support to this view as consumer confidence reports on Friday fell to 80.9 for the month of October from the previous 83.4 (the lowest level since May 2006), short of forecasted figures of 82. Compounding the bearish view on the USD came after Countrywide Financial Corp., the biggest U.S. mortgage lender, reported its first quarterly loss in 25 years as borrowers defaulted on loans, pushing the dollar to its third weekly decline against the Euro. In U.S. share markets the NASDAQ was up 53.33 points (1.94%) whilst the Dow Jones also gained 134.78 points (0.99%) Record Oil prices also ensured that consumer sentiment was weighed upon, with Crude oil trading at a high of US$92.22, before closing the session having gained US$1.40 a barrel to US$91.86.

The Euro (EUR) traded at fresh record highs on a broadly weaker dollar following sustained credit turmoil. The Euro headed towards its third weekly gain against the greenback as consumer confidence did little to provide any relief. Overall the EURUSD traded with a low of 1.4317 and a high of 1.4394 before closing the day at 1.4385 in the New York session.

The Japanese Yen (JPY) failed to gain any boost from consumer price data, which fell for an eighth consecutive month in September, dousing any claims of an increase in interest rates in the near term. Overall the USDJPY traded with a low of 113.92 and a high of 114.57 before closing the day at 114.23 in the New York session.

The Sterling (GBP) was flat against the USD and fell versus the Euro on growing expectations the BoE will look to cut rates by the end of 2007. Private reports viewed that the British economy will slow in growth in 2008 widening the Treasury’s budget deficit, whilst the BoE confirmed that commercial property and financial markets remained vulnerable to further turmoil. Overall the GBPUSD traded with a low of 2.0483 and a high of 2.0573 before closing the day at 2.0519 in the New York session. Second tier data may hold significant importance to begin the week, with the UK economy expected to release data pertaining to consumer credit and mortgage lending.

The Australian Dollar (AUD) traded at fresh 23 year highs, buoyed by a weaker USD and a surge in commodities and energy prices. Overall the AUDUSD traded with a low of 0.9078 and a high of 9178 before closing the day at 0.9171 in the New York session. In the early part of the Asian session, the AUD broke through key 0.9200 levels to at a high of 0.9215.

The South African Rand (ZAR) posted its biggest weekly gain in more than 3 ½ years against the dollar, boosted by a rise in commodity prices and speculation of capital inflows from abroad. Overall the USDZAR traded with a low of 6.5451 and a high of 6.5040 before closing at 6.0520.

Gold (XAU) traded at a fresh high since 1980 on its appeal to hedge inflationary risk. XAU traded with a low of 768.85 and a high of 784.15.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4248	1.4316	1.4410	1.4469	1.4530
USD/JPY	113.26	113.78	114.10	115.04	115.72
GBP/USD	2.0427	2.0481	2.0540	2.0574	2.0654
AUD/USD	0.9010	0.9076	0.9200	0.9341	0.9500
XAU/USD	762.00	769.80	785.60	785.90	790.41

Euro 1.4410

Initial support at 1.4316 (Oct 26 low) followed by 1.4248 (Oct 25 low). Initial resistance is now located at 1.4469 (This week’s open + last week’s range) followed by 1.4530 (Mar 8, 1995 trend high)

Yen 114.10

Initial support is located at 113.78 (Oct 25 low) followed by 113.26 (Oct 22 low). Initial resistance is now at 115.04 (Oct 23 high) followed by 115.72 (Oct 18 high).

Pound – 2.0540
Initial support at 2.0481 (Oct 26 low) followed by 2.0427 (Oct 24 low). Initial resistance is now at 2.0574 (Oct 26 high) followed by 2.0654 (Jul 26 high)

Australian Dollar – 0.9200
Initial support a 0.9076 (Oct 26 low) followed by 0.9010 (Oct 25 low). Initial resistance is now at 0.9341 (This week’s open + (last week’s range * 1.618) followed by 0.9500 (Round number resistance).

Gold – 785.60
Initial support at 769.80 (Oct 26 low) followed by 762.00 (Oct 25 low). Initial resistance is now at 785.90 (Oct 26 trend high) followed by 790.41 (602.42 plus 542.45 – 730.40)

Digg

Del.icio.us

Mixx it!

Reddit!

Wikio

Next Analysis:

Content Provided by:

Easy Forex
Easy-Forex™ Trading Platform, founded by a group of bankers, Forex and Internet experts, offers Forex traders direct access to the global currency markets. Easy-Forex™ revolutionary Online FX trading platform is the first online FX trading system allowing clients to deal Forex as a ...

Disclaimer:
The information and data entailed in this website or otherwise made accessible to you on this website are provided to Easy-Forex™ by a third party provider. Such information and/or data are made accessible for informative purposes only and they can under no circumstances be considered as a recommendation to you by Easy-Forex™ or any Easy-Forex™ personnel to engage in any trade. Hence, neither Easy-Forex™ nor any of its personnel can under any circumstances be held responsible for any outcome of trading decisions or trades in regard to any of such information and/or data. You hereby acknowledge that accessing and reviewing any of such information and/or data and/or using any of the information entailed in this website or otherwise made accessible to you on this website is your sole responsibility and at your own risk and you will have no claims with regards to any such information and/or data against Easy-Forex™ or any of its personnel. If you are unable to agree to this, you should not access and/or make use of any such information and/or data. Easy-Forex™ endorses responsible and moderate trading. Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone and we would like to recommend you not to risk any money, you cannot afford to lose. The transaction of such financial instruments known as Forex, fx, or currency, and dealt on a valued basis known as 'spot' or 'forward', 'day trading' and 'option', can contain a substantial degree of risk. Before deciding to undertake such transactions with Easy-Forex™, and indeed, any other firm offering similar services, a user should carefully evaluate whether his/her financial situation is appropriate for such transactions. Trading foreign exchange may result in a substantial or complete loss of funds and therefore should only be undertaken with risk capital. The definition of risk capital is funds that are not necessary to the survival or well being of the user. Easy-Forex™ strongly recommends that a user, who is considering trading foreign exchange products, read through all the main topics contained in the Easy-Forex™ website so that he/she may obtain a clear and accurate understanding of the risks inherent to ‘forex’ trading. Opinions and analysis on potential expected market movements contained within the Easy-Forex™ website are not to be considered necessarily precise or timely, and due to the public nature of the Internet, Easy-Forex™ cannot at any time guarantee the accuracy of such information. Information provided on this website is intended solely for informational purposes and is obtained from sources believed to be reliable and accurate. Information is in no way guaranteed. Easy-Forex™ and the Easy-Forex™ logo are trademarks and/or registered trademarks of Easy-Forex™ in the United States and/or other countries.

News

Quotes

Forex Analysis

Forex Brokers

Forex Software

Live Events

Charts

Education

Forex Forums

Languages

Risk Disclosure: Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All stock prices, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.