Markets Stable, Oil Higher
CURRENCY TRADING SUMMARY – 29th December (00:30GMT)
U.S. Dollar Trading (USD) markets returned from the Christmas break in a lackluster mood with recent ranges holding and the action reserved only for Crude Oil. Trading remains thin with little economic data released and many traders away for holiday’s until the New Year. DJIA +26 points closing at 10547, S& P +1 points closing at 1127 and NASDAQ +5 points closing at 2291. Looking ahead, October Case Shiller forecast at 0.2% vs. 0.3% m/m previously. Also released, December CB Consumer Confidence forecast at 52.5 vs. 49.5 previously.
The Euro (EUR) was gently supported although the market failed to get past resistance at 1.4420. Traders are wearer of the recent USD strength and any ongoing issues within the European Union flaring up. EUR/JPY and EUR/GBP also stayed in familiar territory. Overall the EUR/USD traded with a low of 1.4353 and a high of 1.4415 before closing at 1.4380.
The Japanese Yen (JPY) crosses kept the USD/JPY well supported even as the USD came under pressure. New Year Highs in the Nikkei and improving risk appetite for the carry trade is keeping the Yen broadly weak. Overall the USDJPY traded with a low of 91.39 and a high of 91.79 before closing the day around 91.60 in the New York session.
The Sterling (GBP) was able to rally from the lower 1.59’s to close above the key Psychological level of 1.6000 with GBP/JPY buying and EUR/GBP slipping below 0.9000 both providing plenty of support. Overall the GBP/USD traded with a low of 1.5930 and a high of 1.6018 before closing the day at 1.6005 in the New York session.
The Australian Dollar (AUD) was the best performer as the market bought commodity currencies on the back of rallies in Oil and Gold. Also helping the Aussie move into the higher 0.8850-90 range was solid support from the AUD/JPY cross which is continuing to grind higher. Overall the AUD/USD traded with a low of 0.8826 and a high of 0.8894 before closing the US session at 0.8870.
Oil & Gold (XAU) rallied well in Asia before paring back gains later in the US session. Overall trading with a low of USD$1101 and high of USD$1114 before ending the New York session at USD$1106 an ounce. Geopolitical concerns helped lift Crude Oil to multi-week highs. Crude Oil was up +$0.80 ending the New York session at $78.80.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.4218 |
1.4324 |
1.4385 |
1.4436 |
1.4481 |
|
USD/JPY |
90.16 |
91.00 |
91.60 |
91.87 |
92.32 |
|
GBP/USD |
1.5903 |
1.5922 |
1.6005 |
1.6023 |
1.6100 |
|
AUD/USD |
0.8735 |
0.8783 |
0.8875 |
0.8925 |
0.9011 |
|
XAU/USD |
1074.00 |
1095 |
1106.00 |
1119 |
1141.00 |
|
OIL/USD |
75.00 |
78.00 |
78.70 |
80.00 |
82.00 |
Euro – 1.4385
Initial support at 1.4324 (Dec 24 low) followed by 1.4218 (Dec 22 low). Initial resistance is now located at 1.4436 (23.6% retrace of 1.5141 – 1.4218) followed by 1.4481 (Oct 2 former low)
Yen – 91.60
Initial support is located at 91.00 (Dec 22 low) followed by 90.16 (Dec 18 low). Initial resistance is now at 91.87 (Dec 22 high) followed by 92.32 (Oct 27 High).
Pound – 1.6005
Initial support at 1.5922 (Dec 22 low) followed by 1.5903 (Oct 14 low). Initial resistance is now at 1.6023 (Dec 25 high) followed by 1.6100 (Dec 22 high).
Australian Dollar – 0.8875
Initial support at 0.8786 (Dec 24 low) followed by the 0.8735 (Dec 23 low). Initial resistance is now at 0.8925 (Dec 21 high) followed by 0.9011 (Dec 17 high).
Gold – 1106
Initial support at 1095 (Dec 24 low) followed by 1074 (Dec 22 low). Initial resistance is now at 1119 (Dec 21 high) followed by 1141 (Dec 17 high) .
Oil – 78.70
Initial support at 78.00 (Intraday support) followed by 75.00 (Intraday support). Initial resistance is now at 80.00 (Key Psychological Level) followed by 82.00 (November High).
