CURRENCY TRADING SUMMARY - 20th July (00:30GMT)
U.S. Dollar Trading (USD) with significant stock gains under the belt already the market was prepared to quietly consolidate into the weekend but this was put on hold when US Housing data shocked to the upside. US June Housing Starts at 582K vs. 530K forecast and Housing Permits at 563K vs. 520K. US earnings are still very much in focus with most traders watching S&P 500 movements for direction in their respective markets. In US share markets, S&P ended -0.36 points (-0.04%) at 940.38, NASDAQ ended +1.58 points (+0.08%) at 1886.61 and DOW JONES ended +32.12 points (+0.37%) at 8743.94.
The Euro (EUR) stalled above 1.4100 and fell back to supports at 1.4070 as the market consolidated gains. Poor GE results (-47% Profits) hurt but this effect was short lived as US housing data inspired a fresh attempt higher. The market ran out of time but the Euro will be looking to test 1.4200 shortly if the current momentum and sentiment continues. Overall the EUR/USD traded with a low of 1.4062 and a high of 1.4146 before closing at 1.4138. Looking ahead, June German PPI is forecast at 0.5% vs. 0.0% previously.
The Japanese Yen (JPY) kept to a tight range falling back below 94 Yen before surging with the US housing data as the crosses shot higher. Upside is currently been capped by technical resistance between 94.50 and 95 and a break above would be required to counter the medium term downtrend. AUD/JPY finished well supported above the Key 75 level and is a good barometer of the market's risk appetite. Overall the USDJPY traded with a low of 93.49 and a high of 94.37 before closing the day around 94.25 in the New York session. Japanese Markets Closed today.
The Sterling (GBP) profit taking turned into a downside test at support at 1.6280 was briefly broken on both the IMF UK report offering a bleak outlook and crosses led by the EUR/GBP breaking to the topside. The market turned sharply on the US housing data though to further complicate an already choppy technical outlook. Overall the GBP/USD traded with a low of 1.6365 and a high of 1.6444 before closing the day at 1.6390 in the New York session.
The Australian Dollar (AUD) consolidated inside the range seen on Thursday with the market pivoting the 0.8000 level waiting for fresh direction. The US data provided an upside bias but the market was in no mood to test resistance above 0.8050 as the week came to a close and US stock markets struggled to sustain small gains. Overall the AUD/USD traded with a low of 0.7970 and a high of 0.8042 before closing the US session at 0.8032.
Gold (XAU) continued to consolidated recent gains trading in a tight range to finish roughly unchanged. Overall trading with a low of USD$932 and high of USD$940 before ending the New York session at USD$938 an ounce.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.4130
Initial support at 1.3833 (Jul 8 low) followed by 1.3749 (Jun 16 low). Initial resistance is now located at 1.4201 (July 1 high) followed by 1.4267 (Jun 5 high)
Yen - 94.20
Initial support is located at 92.72 (Jul 14 low) followed by 91.74 (July 13 low). Initial resistance is now at 94.89 (Jul 8 high) followed by 95.46 (Jul 7 high).
Pound - 1.6350
Initial support at 1.6222 (July 14) followed by 1.5985 (Jun 8 low). Initial resistance is now at 1.6546 (Jul 1 high) followed by 1.6745 (June 30 high).
Australian Dollar - 0.8030
Initial support at 0.7814 (July 14 low) followed by the 0.7703 (July 13 low). Initial resistance is now at 0.8155 (June 30 high) followed by 0.8237 (Jun 11 high).
Gold - 938
Initial support at 918 (Jul 8 low) followed by 905 (July 8 low). Initial resistance is now at 948 (June 26 high) followed by 965 (Jun 10 high).