CURRENCY TRADING SUMMARY –20 OCTOBER 06 (01:30GMT)
- U.S. Dollar Trading (USD) weakened against the majors in the overnight forex session after the release of the Philadelphia Fed survey surprised the market with its weak result. The expected level for the survey was 7.0, yet it came in at -0.7. US jobless claims strengthened falling 10k to 299k for the week. In other markets, the Dow Jones index closed above 12,000 for the first time in history, finishing up 20pts while the NASDAQ lifted 4pts as stronger than expected earnings help to rally the market. Crude oil rose by US85c to US$58.50 a barrel as OPEC agreed to cut production by 1.2 million barrels a day.
- The Euro (EUR) traded within a low of 1.2534 and a high of 1.2641, before closing at 1.2626 in the
New York
- The Japanese Yen (JPY) traded within a low of 118.08 and a high of 118.92 versus the dollar, before closing at 118.15 in the
New York
- The Sterling (GBP) traded within a low of 1.8668 and a high of 1.8797, before closing at 1.8776 in the
New York
- The Australian Dollar (AUD) traded within a low of 0.7544 and a high of 0.7599, before closing at 0.7595 in the
New York
- Gold (XAU) was stronger by US$9.90 to US$602.50 an ounce as crude oil edged up higher.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2483 | 1.2527 | 1.2540 | 1.2644 | 1.2700 |
| USD/JPY | 117.32 | 117.53 | 118.30 | 119.20 | 119.90 |
| GBP/USD | 1.8516 | 1.8663 | 1.8780 | 1.8812 | 1.8904 |
| AUD/USD | 0.7489 | 0.7524 | 0.7590 | 0.7604 | 0.7649 |
| XAU/USD | 577.40 | 586.10 | 599.00 | 600.70 | 607.01 |
- Euro 1.2540
Initial support at 1.2527 (Oct 19 low) followed by 1.2483 (Oct 16 low). Initial resistance is now located at 1.2644 (Oct 19 high) followed by 1.27 (61.8% retracement of the 1.2834 to 1.2483 decline).
- Yen 118.30
Initial support is located at 117.53 (61.8% retracement of the 116.06 to 119.90 advance) followed by 117.32 (Sep 28 low). Initial resistance is now at 119.2 (Oct 18 high) followed by 119.9 (Oct 13 trend high).
- Pound – 1.8780
Initial support at 1.8663 (Oct 18 low) followed by 1.8516 (Oct 11 low). Initial resistance is now at 1.8812 (76.4% retracement of the 1.8904 to 1.8516 decline) followed by 1.8904 (Oct 3 high).
- Australian Dollar – 0.7590
Initial support at 0.7524 (Oct 17 low) followed by 0.7489 (Oct 13 low). Initial resistance is now at 0.7604 (61.8% retracement of the 0.7722 to 0.7414 decline) followed by 0.7649 (76.4% retracement of the 0.7722 to 0.7414 decline).
- Gold – 599
Initial support at 586.1 (Oct 17 low) followed by 577.4 (Oct 13 low). Initial resistance is now at 600.7 (Oct 19 high) followed by 607.01 (Sep 28 high).
