Goldman Sachs Fraud Charge Sinks Market
CURRENCY TRADING SUMMARY – 19th April (00:30GMT)
U.S. Dollar Trading (USD) was stronger against most currencies as risk aversion swept through the markets on the back of the SEC charging Goldman Sash with Fraud in relation to the marketing of CDO products. March Housing Starts jumped 1.6% and US Consumer Sentiment slipped to 69.5 vs. 75 forecast. In US stocks, DJIA -125 points closing at 11018, S& P -19 points closing at 1192 and NASDAQ -34 points closing at 2481. Looking ahead, Fed Chairman Bernanke Speaks.
The Euro (EUR) news that the EU and IMF were sending officials to Greece over the weekend added to the speculation that Greece may activate the AID package. Also hurting the Euro was the grounding of most Air traffic due to volcanic ash. March CPI was at 1.5% vs. 1.4%. Overall the EUR/USD traded with a low of 1.3473 and a high of 1.3581 before closing at 1.3504.
The Japanese Yen (JPY) was the strongest currency as the safe haven outpaced the USD gains with support at Y92.60 breaking in the US session. US banking troubles and the falling US Bond yields lowered the attraction of the greenback. A spike higher was seen in the European session however as another lawmaker in Japan commented about intervening in Yen. Overall the USDJPY traded with a low of 91.91 and a high of 93.14 before closing the day around 92.13 in the New York session.
The Sterling (GBP) was heavy for the majority of the day as the poor performance from the UK conservative leader in the leader’s Debate saw traders sell the pound of speculation of a hung parliament. GBP/JPY was the worst hit down over 2 Yen. Overall the GBP/USD traded with a low of 1.5362 and a high of 1.5480 before closing the day at 1.5389 in the New York session.
The Australian Dollar (AUD) was hit from multiple angles as risk aversion from weak stocks and commodities combined with liquidation in most crosses to see the AUD test 0.9230 in the US session. The Support held firm but sentiment is turning quickly on the heavily bought risk currency. Overall the AUD/USD traded with a low of 0.9230 and a high of 0.9345 before closing the US session at 0.9250.
Oil & Gold (XAU) fell heavily on Oil weakness and USD strength. Overall trading with a low of USD$1130 and high of USD$1158 before ending the New York session at USD$1136 an ounce. Crude Oil fell the most in 2 month on the Goldman Sachs inspired risk aversion. WTI Oil Closed -$2.27 at $83.24 a barrel.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3270 |
1.3343 |
1.3460 |
1.3741 |
1.3819 |
|
USD/JPY |
91.00 |
91.46 |
92.10 |
93.77 |
94.27 |
|
GBP/USD |
1.5044 |
1.5130 |
1.5250 |
1.5339 |
1.5688 |
|
AUD/USD |
0.9131 |
0.9166 |
0.9190 |
0.9354 |
0.9406 |
|
XAU/USD |
1122.00 |
1130 |
1135.00 |
1169 |
1183.00 |
|
OIL/USD |
79.50 |
80 |
81.80 |
82.5 |
85.00 |
Euro – 1.3460
Initial support at 1.3343 (Apr 9 high) followed by 1.3270 (Mar 25 low). Initial resistance is now located at 1.3741 (Mar 18 high) followed by 1.3819 (Mar 17 high)
Yen – 92.10
Initial support is located at 91.46 (0.500 of 88.14-94.79) followed by 91.00 (Previous Resistance). Initial resistance is now at 93.77 (Apr 9 high) followed by 94.27 (Apr 7 High).
Pound – 1.5250
Initial support at 1.5130 (Apr 6 low) followed by 1.5044 (Mar 31 low). Initial resistance is now at 1.5339 (Apr 13 low) followed by 1.5688 (Feb 18 low).
Australian Dollar – 0.9190
Initial support at 0.9166 (Apr 6 low) followed by the 0.9131 (Apr 6 low). Initial resistance is now at 0.9354 (Apr 16 high) followed by 0.9406 (Nov 16 high).
Gold – 1135
Initial support at 1130 (Apr 8 low) followed by 1122 (Apr 7 low). Initial resistance is now at 1169 (Dec 8 high) followed by 1183 (0.764 of 1126.56-1044.85).
Oil – 81.80
Initial support at 80.00 (Intraday Support) followed by 79.50 (Intraday Support). Initial resistance is now at 82.50 (March high) followed by 85.00 (Intraday Resistance).
