CURRENCY TRADING SUMMARY –23 MARCH 07 (23:30GMT)
- U.S. Dollar Trading (USD) recovered on Thursday, recouping some the previous days losses. This was attributed to the fact that investors were more inclined to re-enter risky trades as the Federal Reserve moving away from the bias of raising interest rates. In
US US
- The Euro (EUR) surrendered its gains easing 0.23% from two year highs of 1.3411 during the Asian session of trading. The slide in the Euro was helped by the Trade balance coming in worse than expected at -7.8 bln where markets were expecting a figure of 1.2 bln. Overall, the Euro traded with a low of 1.3311 and a high of 1.3412 before closing at 1.3331 in the
New York
- The Japanese Yen (JPY) weakened against the USD by 0.23%. Despite a strong Trade Balance figure of 979 bln being released for the month of Feb. The JPY also suffered also on the back of the funding of carry trades. Overall, the JPY traded with a low of 117.25 and a high of 118.32 before closing the day at 118.15 in the
New York
- The Sterling (GBP) strengthened on the back of a strong retail sales figure with figure being released at 1.4% (Forecast: 0.7% Previous: -1.5%R) before surrendering its day gains. Overall the
Sterling traded with a low of 1.9613 and a high of 1.9726 before closing at 1.9650 in theNew York
- The Australian Dollar (AUD) remained steady to close the day relatively unchanged. Overall, the AUD traded with a range of a low 0.8057 and a high 0.8092 before closing at 0.8065.
- The Turkish Lira (TRY) strengthened on the back of the
Istanbul
- Gold (XAU) remained steady for the majority of the day before strengthening by $4.20 an ounce to US$664.20.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3187 | 1.3270 | 1.3330 | 1.3412 | 1.3481 |
| USD/JPY | 116.51 | 117.16 | 118.10 | 118.32 | 118.50 |
| GBP/USD | 1.9431 | 1.9555 | 1.9640 | 1.9728 | 1.9749 |
| AUD/USD | 0.7876 | 0.7943 | 0.8065 | 0.8095 | 0.8100 |
| XAU/USD | 646.20 | 652.40 | 664.10 | 666.92 | 667.61 |
- Euro 1.3330
Initial support at 1.3270 (Mar 20 reaction low) followed by 1.3187 (Former resistance of Mar 7 low). Initial resistance is now located at 1.3412 (1.2865+(0.618 of 1.2483 – 1.3368) followed by 1.3481 (Mar 11, 2005 reaction high)
- Yen 118.10
Initial support is located at 117.16 (Mar 21 low) followed by 116.51 (Mar 16 low). Initial resistance is now at 118.32 (Mar 22 high) followed by 118.50 (Mar 12 high)
- Pound – 1.9640
Initial support at 1.9555 (Mar 21 reaction low) followed by 1.9431 (Mar 20 low). Initial resistance is now at 1.9728 (Mar 22 high) followed by 1.9749 (Feb 2 reaction high)
- Australian Dollar – 0.8065
Initial support a 0.7943 (Mar 19 low) followed by 0.7876 (Mar 16 low). Initial resistance is now at 0.8095 (Mar 22 trend high) followed by 0.8100 (psychological round number)
- Gold – 664.10
Initial support at 652.40 (Mar 19 low) followed by 646.20 (Mar 16 low). Initial resistance is now at 666.92 (Mar 22 high) followed by 667.61 (61.8% retracement of the 689.00 to 633.00 decline)
