Dollar falls on Poor Consumer Confidence. New Home Sales and German IFO key
CURRENCY TRADING SUMMARY – 26 MARCH 2008 (00:30GMT)
·U.S. Dollar Trading (USD) saw second tier data in the form of Consumer Confidence for the month of March decline to its lowest level in five years in retrospect of recent woes and fears that the economy had fallen into a recession. As a result, the USD traded lower against a number of majors upon the data release. In
·The Euro (EURO) saw the European Central Bank respond to continued liquidity strains by injecting funds into the European banking system as part of global effort to lift market confidence. The Central bank allotted 216 billion Euros in its weekly refinancing operation. Overall the EURUSD traded with a low of 1.5405 and a high of 1.5607 before closing the day at 1.5596 in the
·The Japanese Yen (JPY) Nikkei index in
·The Sterling (GBP) tracked other majors breaking key $2 levels. Overall the GBPUSD traded with a low of 1.9850 and a high of 2.0005 before closing the day at 1.9995 in the
·The Australian Dollar (AUD) also edged higher on rebounding stocks and commodities. Overall the AUDUSD traded with a low of 0.9070 and a high of 0.9170 before closing the day at 0.9160 in the
·Gold (XAU) continued its three day rebound on Tuesday. XAU traded with a low of 912.30 and a high of 936.00.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.5342 | 1.5408 | 1.5610 | 1.5647 | 1.5689 |
| USD/JPY | 99.01 | 99.33 | 100.10 | 101.04 | 101.69 |
| GBP/USD | 1.9737 | 1.9849 | 2.0025 | 2.0027 | 2.0068 |
| AUD/USD | 0.8879 | 0.9076 | 0.9165 | 0.9172 | 0.9226 |
| XAU/USD | 906.93 | 912.02 | 939.00 | 939.47 | 954.03 |
·Euro – 1.5610
Initial support at 1.5408 (Mar 25 low) followed by 1.5342 (Mar 24 low & 38.2% retracement of the 1.5904 to 1.5342 decline). Initial resistance is now located at 1.5647 (Mar 20 high) followed by 1.5689 (61.8% retracement of the 1.5904 to 1.5342 decline).
·Yen – 100.10
Initial support is located at 99.33 (Mar 24 low) followed by 99.01 (Mar 21 low). Initial resistance is now at 101.04 (Mar 25 high) followed by 101.69 (Mar 13 high)
·Pound – 2.0025
Initial support at 1.9849 (Mar 25 low) followed by 1.9737 (Mar 20 low). Initial resistance is now at 2.0027 (Mar 25 high) followed by 2.0068 (50% retracement of the 2.0398 to 1.9737)
·Australian Dollar – 0.9165
Initial support a 0.9076 (Mar 25 low) followed by 0.8879 (Mar 24 low). Initial resistance is now at 0.9172 (Mar 17 high) followed by 0.9226 (50% retracement of the 0.9499 to 0.8953 decline)
·Gold – 939.00
Initial support at 912.02 (Mar 25 low) followed by 906.93 (Mar 24 low). Initial resistance is now at 939.40 (Mar 25 high) followed by 954.03 (38.2% retracement of the 1032.50 to 905.03 decline)
