CURRENCY TRADING SUMMARY – 16 JANUARY 2008 (00:30GMT)
·U.S. Dollar Trading (USD) saw another session of volatility as markets once again paid attention to the equity prices as a g
·The Euro (EUR) fell versus the USD on the back of EURJPY sell off trading at a low of 158.34. Overall the EURUSD traded with a low of 1.4822 and a high of 1.4923 before closing the day at 1.4827 in the
·The Japanese Yen (JPY) was best served with the plunge in stock prices overnight ensuring that the JPY has been able to gain 13% versus the dollar in the past six months. Much of the strength was on the back of carry trades being reversed. Overall the USDJPY traded with a low of 106.60 and a high of 108.34 before closing the day at 106.82 in the
·The Sterling (GBP) rose the most against the dollar in a month and rebounded from a record low versus the Euro as inflation unexpectedly held above the BoE’s 2% target for a third month, reducing pressure on policy makers to cut interest rates. Overall the GBPUSD traded with a low of 1.9528 and a high of 1.9741 before closing the day at 1.9644 in the
·The Australian Dollar (AUD) fell on the back of risk aversion triggered by a plunge in stock prices. Overall the AUDUSD traded with a low of 0.8852 and a high of 0.9018 before closing the day at 0.8955 in the
·Gold (XAU) fell from a record after the dollar rebounded against the Euro and energy costs eased, reducing the appeal of the precious metal as an alternative investment. Traded with a low 894.10 and a high of 913.80.
TECHNICAL COMMENTARY
Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
EUR/USD | 1.4640 | 1.4762 | 1.4795 | 1.4922 | 1.4968 |
USD/JPY | 105.94 | 106.52 | 106.65 | 108.98 | 110.12 |
GBP/USD | 1.9432 | 1.9484 | 1.9580 | 1.9763 | 1.9829 |
AUD/USD | 0.8705 | 0.8782 | 0.8825 | 0.9022 | 0.9073 |
XAU/USD | 866.50 | 887.90 | 896.60 | 914.40 | 925.00 |
·Euro – 1.4795
Initial support at 1.4762 (Jan 14 low) followed by 1.4640 (Jan 9 low). Initial resistance is now located at 1.4922 (Jan 14 high) followed by 1.4968 (Nov 23 high).
·Yen – 106.65
Initial support is located at 106.52 (Jun 2005 low) followed by 105.94 (Nov 26 trend low). Initial resistance is now at 108.98 (Jan 14 high) followed by 110.12 (Jan 9 high)
·Pound – 1.9580
Initial support at 1.9484 (Jan 11 low) followed by 1.9432 (Mar 20 low). Initial resistance is now at 1.9763 (Jan 9 high) followed by 1.9829 (Jan 8 high)
·Australian Dollar – 0.8825
Initial support a 0.8782 (Jan 16 low) followed by 0.8705 (Jan 8 low). Initial resistance is now at 0.9022 (Nov 15 high) followed by 0.9076 (61.8% retracement of the 0.9400 to 0.8553 decline)
·Gold – 896.60
Initial support at 887.90 (Jan 11 low) followed by 866.5 (Jan 10 low). Initial resistance is now at 914.40 (Jan 14 high) followed by 925 (Round number resistance)