MARKET SUMMARY –26JUNE06 (05:00GMT)
- The Dollar continued to strengthen against the majors even in the face of a worse than expected durable goods orders, as the market factored in a possible rate hike by the US Federal Reserve in August as well as one later this week. US durable goods orders fell by 0.3% in May, whereas the market was expecting a rise of 0.5%. In other markets, the Dow Jones retreated 30 points after trading over a 100 point range, and the NASDAQ gave up 1.5 points. Crude oil prices remained relatively stable as higher
US
- The Euro traded in a range of 1.2479 to 1.2587, before closing at 1.2506 in the
New York
- The Japanese yen traded in a range of 115.77 to 116.59 versus the dollar, before closing at 116.55 in the
New York
- The Sterling traded in a range of 1.8127 to 1.8312, before closing at 1.8280 in the
New York
- The Aussie traded in a range of 0.7304 to 0.7349, before closing at 0.7318 in the
New York - Gold rose by US$2.60 to US$588.00 an ounce defying a weaker oil price and stronger greenback as the market covered their short positions ahead of the weekend.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2403 | 1.2478 | 1.2515 | 1.2589 | 1.2681 |
| USD/JPY | 114.37 | 115.76 | 116.40 | 116.66 | 116.95 |
| GBP/USD | 1.7916 | 1.8126 | 1.8195 | 1.8315 | 1.8316 |
| AUD/USD | 0.7237 | 0.7270 | 0.7320 | 0.7424 | 0.7450 |
- Euro 1.2515
Initial support at 1.2478 (June 23 low) followed by 1.2403 (50% retracement of the 1.1951 to 1.2980 rally). Initial resistance is now located at 1.2589 (June 23 reaction high) followed by 1.2681(Jun 22 high).
- Yen 116.40
Initial support is located at 115.76 (June 23 low) followed by 114.37 (Jun 21 low). Initial resistance is now at 116.66 (61.8% retracement of the 121.41 to 108.98 decline) followed by 116.95 (76.4% retracement of the 119.41 to 108.98 decline).
- Pound – 1.8195
Initial support at 1.8126 (June 23 low) followed by 1.7916 (61.8% retracement of the 1.7230 to 1.9027 rally). Initial resistance is now at 1.8315 (Jun 23 reaction high) followed by 1.8316 (Jun 13 low).
- Aussie – 0.7320
Initial support at 0.727 (April 17 low) followed by 0.7237 (Apr 13 low). Initial resistance is now at 0.7424 (June 22 high) followed by 0.745 (June 16 high).
