Independence day c
CURRENCY TRADING SUMMARY –05 JULY 2007 (00:30GMT)
- U.S. Dollar Trading (USD) was still weary, remaining near multi year lows against a basket of currencies. With thin trading on the back of 4th of July Holidays, the USD dollar did little to move in any direction. In
U.S.
- The Euro (EUR) was relatively unchanged overnight as comments made by president Trichet did little to move markets any further. With expectations of “hawkish” outlook ahead of ECB rate announcement on Thursday, the Central Bank are seen at reinforcing expectations of eventual higher rates in the Euro zone on Thursday, while keeping them on hold for now at 4.0 percent. Overall the EURUSD traded with a range of a low 1.3606 and a high of 1.3631 before closing the day at 1.3622 in the
New York
- The Japanese Yen (JPY) fell by 0.2% against the USD to end recent Yen rallying. Overall the USDJPY traded with a range of a low 122.22 and a high of 122.68 before closing the day at 122.63 in the
New York
- The Sterling (GBP) jumped to a 26 year high against the USD during Wednesday’s session breaking through 2.0200 levels, before pairing off its gains. Overall the GBPUSD traded with a range of a low 2.0153 and a high of 2.0206 before closing the day at 2.0163 in the
New York
- The Australian Dollar (AUD) rallied back towards to 18 year peak versus the USD despite the decision by the RBA to keep rates unchanged. The AUD found support by a surprise shrinking of the Trade Balance in the month of May. Overall the AUDUSD traded with a range of a low 0.8545 and a high of 0.8586 before closing the day at 0.8575 in the
New York
- The Swedish Crown (SEK) rose to its highest in over a month against the Euro and dollar on Wednesday after the country’s central bank said the vote for last month’s interest rate hike was unanimous. The unanimous vote backed up traders’ interpretation of the Riksbank’s statement accompanying the hike to 3.5 percent, in which it sharply raised its forecast for rates amid wage growth, expansionary fiscal policy and slowing productivity growth. The Euro fell as low as 9.1843 crowns from around 9.2170 crowns just before the minutes, while the dollar fell as low as 6.7430 crowns from 6.7650 crowns.
- Gold (XAU) eased by US$2.70 an ounce to US$652.70 despite reaching as high as US$653.80 during European Session.
CURRENCY OF THE WEEK
- CAD/JPY traded higher on Wednesday supported by strong commodity prices in a quiet session marked by a lack of domestic data from
Japan
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3414 | 1.3527 | 1.3610 | 1.3641 | 1.3683 |
| USD/JPY | 121.49 | 122.09 | 122.80 | 123.56 | 124.17 |
| GBP/USD | 1.9974 | 2.0070 | 2.0155 | 2.0220 | 2.0244 |
| AUD/USD | 0.8460 | 0.8541 | 0.8570 | 0.8602 | 0.8700 |
| XAU/USD | 640.00 | 648.85 | 654.50 | 658.75 | 662.35 |
- Euro 1.3610
Initial support at 1.3527 (June 2 low) followed by 1.3414 (Jun 27 low). Initial resistance is now located at 1.3641 (Jul 2 high) followed by 1.3683 (Apr 27 trend high)
- Yen 122.80
Initial support is located at 122.09 (Jul 2 low) followed by 121.49 (Jun 13 low). Initial resistance is now at 123.56 (Jun 29 reaction high) followed by 124.17 (Jun 22 trend high)
- Pound – 2.0155
Initial support at 2.0070 (Jul 2 low) followed by 1.9974 (Jun 28 low). Initial resistance is now at 2.0220 (Former support Mar 1979) followed by 2.0244 (Tues open + (Mon range *0.618)
- Australian Dollar – 0.8570
Initial support a 0.8541 (June 4 low) followed by 0.8460 (Jun 29 low). Initial resistance is now at 0.8602 (Jul 2 trend high) followed by 0.8700 (Round Number)
- Gold – 654.50
Initial support at 648.85 (Jul 2 low) followed by 640.00 (Jun 26 low). Initial resistance is now at 658.75 (July 2 high) followed by 662.35 (61.8% retracement 674.00 to 643.50 decline)
