Dollar Up as Stocks fall
CURRENCY TRADING SUMMARY – 21st March (00:30GMT)
U.S. Dollar Trading (USD) enjoyed a solid day of gains as the stock market pulled back into the weekend after 8 days of gains. Weighing on investor sentiment was the surprise rate hike by the reserve bank of India. Risk Aversion ticked higher and Currencies such as the NZD and GBP were sold heavily. In US stocks, DJIA -37 points closing at 10741, S& P -6 points closing at 1159 and NASDAQ -16 points closing at 2374. Looking ahead,Treasury Secretary Geithner Speaks.
The Euro (EUR) with no resolution to the ongoing Greece saga there was little incentive to buy the Euro and with weak Oil and Stocks the pair slipped back to 1.3500 support. German PPI was at 0.0% v.s. 0.1% m/m forecast. Overall the EUR/USD traded with a low of 1.3502 and a high of 1.3626 before closing at 1.3530. Looking ahead, ECB President Trichet speaks.
The Japanese Yen (JPY) USD strength and continued calls for further discount rate hikes helped the major hold ground even in a risk averse environment. Crosses were not as well supported however and most finished near week lows. Overall the USDJPY traded with a low of 90.34 and a high of 90.71 before closing the day around 90.52 in the New York session.
The Sterling (GBP) was the softest currency on Friday as the pair pulled back to 1.5000 and EUR/GBP broke back above 0.9000. Focus was on BoE Sentence’s comment that the UK is at some risk of a double dip recession. Overall the GBP/USD traded with a low of 1.4990 and a high of 1.5255 before closing the day at 1.5014 in the New York session. Looking ahead, BOE Governor King Speaks.
The Australian Dollar (AUD) was sold heavily in the US session as Gold slumped over $15 an ounce in 15 minutes. AUD/USD found support at 0.9130 but closed on a soft footing as the RBI rate hike put focus back on monetary tightening in China and India. Overall the AUD/USD traded with a low of 0.9130 and a high of 0.9224 before closing the US session at 0.9154.
Oil & Gold (XAU) Crashed in the US session fueled by large stops under $1118. Overall trading with a low of USD$1101 and high of USD$1127 before ending the New York session at USD$1105 an ounce. Crude Oil bowed to USD strength. Crude Oil was down -$1.52 ending the New York session at $80.68.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3436 |
1.3500 |
1.3525 |
1.3741 |
1.3818 |
|
USD/JPY |
89.27 |
89.63 |
90.50 |
90.80 |
91.09 |
|
GBP/USD |
1.4925 |
1.4979 |
1.5010 |
1.5382 |
1.5477 |
|
AUD/USD |
0.9056 |
0.9096 |
0.9150 |
0.9252 |
0.9280 |
|
XAU/USD |
1190.00 |
1098 |
1105.00 |
1118 |
1133.00 |
|
OIL/USD |
78.00 |
80 |
80.60 |
82 |
83.20 |
Euro – 1.3525
Initial support at 1.3500 (Psychological level) followed by 1.3436 (Mar 2 low). Initial resistance is now located at 1.3741 (Mar 18 high) followed by 1.3818 (Mar 18 high)
Yen – 90.50
Initial support is located at 89.63 (Mar 16 low) followed by 89.27 (Mar 9 low). Initial resistance is now at 90.80 (Mar 16 high) followed by 91.09 (Mar 12 high).
Pound – 1.5010
Initial support at 1.4979 (Mar 16 low) followed by 1.4925 (0.764 of 1.4784-1.5382). Initial resistance is now at 1.5382 (Mar 17 high) followed by 1.5477 (Feb 24 low).
Australian Dollar – 0.9150
Initial support at 0.9096 (Mar 15 low) followed by the 0.9056 (Mar 9 low). Initial resistance is now at 0.9252 (Mar 17 high) followed by 0.9280 (Jan 18 high).
Gold – 1105
Initial support at 1098 (Mar 12 low) followed by 1090 (Feb 25 Low). Initial resistance is now at 1118 (Mar 17 low) followed by 1133 (Mar 17 high).
Oil – 80.60
Initial support at 80.00 (Intraday Support) followed by 78.00 (Intraday Support). Initial resistance is now at 82.00 (Intraday Resistance) followed by 83.20 (March High).
