UFXBank Daily News: USD/JPY is strongly bearish

Posted by admin on July 28, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – In forex trading, the Dollar advanced against most the other major currency pairs as an agreement to raise the US debt limit remained elusive, spurring demand for a refuge. In addition, the Durable Goods Orders came out at -2.1% vs. 0.4% previously and the Core Durable Goods came out at 0.1% vs. 0.5% previously. Wall Street closed negative as the NASDAQ fell by 2.65% and the Dow Jones by 1.59% respectively. Crude oil fell by 2.2% owing to the Crude Oil Inventories data which came out better than expected, rising to 2.3M vs. -1.2M previously and closing at $97.40 a barrel. Gold (XAU) declined by 0.35%, closing at $1613.45 an ounce. Today, Unemployment Claims are expected to fall to 412K vs. 418K last week. Pending Home Sales are expected to become negative, from 8.20% to -2.00%.

Euro (EUR) – The Euro fell against the US Dollar after Standard & Poor’s lowered Greece to CC, two steps above default. The EUR/USD’s momentum turned bearish as the pair broke the 1.4450 level; and as long as the Euro is trading below the 1.4400 level, the pair will most likely decrease further from 1.4250 and continue to decline. Overall, EUR/USD traded with a low of 1.4338 and with a high of 1.4536. Today, the German Unemployment Change is expected to fall to -15.00K vs. -8.00K prior.

EUR/USD – Last: 1.4357

Resistance	1.4438	1.4535
Support	1.4325	1.4240

British Pound (GBP) – The Pound declined from a two-month high against the US dollar as an index of U.K. factory orders fell more than estimated. The CBI Industrial Order came out lower than expected, -10 vs. -2. As long as the GBP/USD is trading below 1.6400 level the momentum of the Pound is bearish, and the next support level on the one hour chart is located at 1.6260; the moving average supports a downtrend. Overall, GBP/USD traded with a low of 1.6312 and with a high of 1.6439. Today, the CBI Realized Sales are expected to become positive, from -2 to 2.

GBP/USD – Last: 1.6337

Resistance	1.6340	1.6440
Support	1.6260	1.6120	1.6070

Japanese Yen (JPY) –The Yen fluctuated against the Dollar, but managed to close with a small gain, as negative data from the US caused investors to prefer the Yen as a safe haven. The USD/JPY is strongly bearish and as long as the pair is trading below 78.50, the yen is more attractive. Overall, USD/JPY traded with a low of 77.57 and with a high of 78.16. No economic data is expected today.

USD/JPY-Last: 77.84

Resistance	78.15	78.55	79.00
Support	77.55

Canadian dollar (CAD) – The Canadian Dollar weakened against the US Dollar as the worldwide value of the USD rose and the price of oil fell, causing the Canadian to lose momentum. As long as the pair is trading above the 0.9440 level, the momentum of the US Dollar is positive. The next resistance level on the one hour chart is located at 0.9530. Overall, USD/CAD traded with a low of 0.9410 and with a high of 0.9505. No economic data is expected today.

USD/CAD – Last: 0.9492