Stronger US Housing Data offset by surging oil hitting stocks and Dollar
CURRENCY TRADING SUMMARY – 26th MAY 2008 (00:30GMT)
·U.S. Dollar Trading (USD) finished the week a little stronger after US existing home sales data came in at 4.89 million vs. 4.86 million expected. These gains were balanced earlier in the day, through the continued rise of crude oil and falling equities. The U.S share markets were down substantially for the third time last week, with the NASDAQ down 19.91 points (-.81%) and DOW JONES down 145.99 points (-1.16%). Crude oil gained $1.38, closing the New York session at $132.19 per barrel. Looking ahead, thin trading is expected with markets closed for Memorial Day.
·The Euro (EURO) was a little mixed on the back of PMI services (50.6 actual vs. 51.7 expected) and manufacturing (50.5 actual vs. 50.5 expected). The May Figures indicated a considerable future economic slowdown. Overall the EURUSD traded with a low of 1.5693 and a high of 1.5795 before closing the day at 1.5768 in the New York session. Looking ahead, no data out today from the Eurozone.
·The Japanese Yen (JPY) strengthened on the back of the falling equities and rise in risk aversion. The USDJPY traded with a low of 103.05 and a high of 104.26 before closing the day around 103.24 in the New York session.Looking ahead, quiet day from Japan.
·The Sterling (GBP) was fairly unmoved as revised GDP came in as expected at 0.4% for the first quarter. Overall the GBPUSD traded with a low of 1.9755 and a high of 1.9852 before closing the day at 1.9821 in the New York session. Looking ahead, bank holiday in UK today.
·The Australian Dollar (AUD) kept to a tight range failing to set new 24 year record highs on despite sturdy commodities. AUDJPY was weighed by equities ending the week at 99.15. Overall the AUDUSD traded with a low of 0.9554 and a high of 0.9638 before closing the day at 0.9594 in the New York session.
·Gold (XAU) gained $1 an ounce inline with oil on inflation concerns. Overall trading with a low of $915 and high of $929 ending the New York session at $925.8.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.5504 |
1.5612 |
1.5785 |
1.5814 |
1.5846 |
|
USD/JPY |
101.91 |
102.58 |
103.20 |
1.04.48 |
105.44 |
|
GBP/USD |
1.9614 |
1.9684 |
1.9810 |
1.9870 |
1.9881 |
|
AUD/USD |
0.9511 |
0.9546 |
0.9595 |
0.9655 |
0.9723 |
|
XAU/USD |
901.00 |
915.25 |
926.00 |
935.40 |
953.00 |
·Euro – 1.5785
Initial support at 1.5612 (38.2% retracement 1.5284-1.5814) followed by 1.5504 (May 20 low). Initial resistance is now located at 1.5814 (May 22 high) followed by 1.5846 (76.4% retracement 1.5284-1.5814)
·Yen – 103.20
Initial support is located at 102.58 (May 12 low) followed by 101.91 (38.2% retracement of 95.76-105.71). Initial resistance is now at 104.38 (May 22 high) followed by key 104.48 (May 20 high).
·Pound – 1.9810
Initial support at 1.9684 (May 22 low) followed by 1.9614 (May 21 low). Initial resistance is now at 1.987 (76.4% retracement of 2.00027-1.9363) followed by 1.9881 (50% retracement 2.0398-1.9393).
·Australian Dollar – 0.9595
Initial support a 0.9545 (May 22 low) followed by 0.9511 (May 19 low). Initial resistance is now at 0.9655 (May 21 trend high) followed by 0.9723 (open this week + range last week*0.618).
·Gold – 926
Initial support at 916.7 (May 23 low) followed by 901 (May 19 low). Initial resistance is now at 935.4 (May 22 high) followed by 953.0 (Apr 17 high).
