19/07/06
last week’s currency trading review
The Dollar was stronger versus the majors last week due to strong rallies in the US Treasuries market in the midst of intensifying conflict in the Middle East, the continuing stand-off over
The forex trading week preview
The key event in the coming week is clearly Bernanke’s Congressional testimony, although he could find it difficult to offer a clear – cut view given the FOMC’s ‘data-dependent’ approach.
In the States in a heavy data week, the highlight is clearly the presentation by Fed Chairman Bernanke of the Semiannual Monetary Report to Congress – to the Senate Banking Committee (Wednesday). In terms of data, the CPI (Wednesday) for June is the most high profile release. The Philly Fed index (Thursday) has been more stable recently although analysts expect a decline this month. The Conference Board’s US leading index (Thursday) is forecast to rebound in June after the previous month’s large drop. Finally in the
In the Eurozone French household spending (Friday) has been especially impressive recently, supported by a decline in the saving ratio. In the
Key Weekly Pivot levels
Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
EUR/USD | 1.2403 | 1.2473 | 1.2500 | 1.2560 | 1.2658 |
USD/JPY | 116.15 | 116.69 | 117.40 | 117.60 | 117.79 |
GBP/USD | 1.8090 | 1.8176 | 1.8250 | 1.8330 | 1.8389 |
AUD/USD | 0.7399 | 0.7460 | 0.7465 | 0.7539 | 0.7568 |
XAU/USD | 620.70 | 627.83 | 633.00 | 676.35 | 686.16 |
- Euro 1.2500
Initial support at 1.2473 (Jul 18 low) followed by 1.2403 (50% retracement of the 1.1825 to 1.2890 advance). Initial resistance is now located at 1.2560 (July 18 high) followed by 1.2658 (Jul 17 high).
- Yen 117.40
Initial support is located at 116.69 (July 18 low) followed by 116.15 (Jul 17 low). Initial resistance is now at 117.6 (Jul 18 high) followed by 117.79 (Apr 21 high).
- Pound – 1.8250
Initial support at 1.8176 (Jul 17 reaction low) followed by 1.809 (Jun 29 reaction low). Initial resistance is now at 1.833 (July 18 high) followed by 1.8389 (July 17 high).
- Australian Dollar – 0.7465
Initial support at 0.746 (Jul 11 low) followed by 0.7399 (Jul 5 low). Initial resistance is now at 0.7539 (July 17 high) followed by 0.7568 (Jul 13 high).
- Gold – 633
Initial support at 627.83 (Jul 18 low) followed by 620.7 (Jul 10 reaction low). Initial resistance is now at 676.35 (Jul 17 high) followed by 686.18 (76.4% retracement of the 730.25-543.50 decline).