U.S. Dollar Trading (USD) Fed Chief Bernanke's Speech before lawmakers offered little new to the outlook for US monetary policy with his concerns about the US unemployment situation still remaining his major focus. US stocks fell back in a slight profit taking session. In US stocks, DJIA +6 points closing at 12239, S&P -3 points closing at 1320 and NASDAQ -7 points closing at 2790. Looking ahead, Weekly Jobless Claims forecast at 410k vs. 415k previously.

The Euro (EUR) push higher outperforming the rest of the market to break above 1.3700. Helping underpin the single currency is improving economic data with December German Trade Balance overnight printing 14bn vs. 12bn forecast. Overall the EUR/USD traded with a low of 1.3609 and a high of 1.3746 before closing the day around 1.3730 in the New York session.

The Japanese Yen (JPY) consolidated above Y82 and grinded higher in quiet trade. Close attention is paid to the US treasury Yields when trading USD/JPY with higher Yields supporting the USD and pushing the pair higher. Overall the USD/JPY traded with a low of 82.19 and a high of 82.69 before closing the day around 82.35 in the New York session.

The Sterling (GBP) another blowout in the UK Trade Balance to fresh record deficit -9.25bn in December kept the Pound under pressure overnight with EUR/GBP the most noticeably mover up above 0.8500 extending 3 days of rally. Overall the GBP/USD traded with a low of 1.6030 and a high of 1.6128 before closing the day at 1.6100 in the New York session. Looking ahead, MPC Rate announcement forecast to remain at 0.5% although inflation pressures building lately is making talk of a possible hike more prevalent.

The Australian Dollar (AUD) also struggled to track the Euro higher falling back to 1.0100 support on profit taking in the US stocks. Westpac Consumer Sentiment bounced back +1.9% vs. -5.7% previously. Overall the AUD/USD traded with a low of 1.0086 and a high of 1.0154 before closing the US session at 1.0120. Looking ahead, January Unemployment Rate forecast to remain at 5.0% and the Employment Change forecast at 15k vs. 2.3k previously.

Oil & Gold (XAU) consolidated above $1360 in a tight range. Overall trading with a low of USD$1357 and high of USD $1367 before ending the New York session at USD$1364 an ounce. WTI Stabilized after heavy selling in recent days, Brent Oil extended gains extending above $100. WTI Oil Closed +$0.08 at $87.02 a barrel.



TECHNICAL COMMENTARY

Currency

Sup 2

Sup 1

Spot

Res 1

Res 2

EUR/USD

1.3509

1.3572

1.3725

1.3826

1.3862

USD/JPY

81.13

81.64

82.35

82.93

83.22

GBP/USD

1.6010

1.6028

1.6100

1.6163

1.6299

AUD/USD

1.0056

1.0083

1.0115

1.0228

1.0256

XAU/USD

1343.00

1348

1364

1371

1379

OIL/USD

85.00

86.00

86.80

88.00

88.00





Euro - 1.3725

Initial support at 1.3572 (Feb 8 low) followed by 1.3509 (Feb 7 low). Initial resistance is now located at 1.3826 (Feb 3 high) followed by 1.3862 (Feb 2 High)



Yen - 82.35

Initial support is located at 81.64 (61.8% retrace of 81.13-82.47) followed by 81.13 (Feb 4 low). Initial resistance is now at 82.93 (Jan 28 high) followed by 83.22 (Jan 27 high).

Pound - 1.6100

Initial support at 1.6028 (Feb 8 high) followed by 1.6010 (Feb 1 low). Initial resistance is now at 1.6163 (Feb 8 high) followed by 1.6186 (Feb 7 High).

Australian Dollar - 1.0115

Initial support at 1.0083 (Feb 3 low) followed by the 1.0056 (Feb 2 low). Initial resistance is now at 1.0228 (Jan 3 high) followed by 1.0256 (Dec 31 high).

Gold - 1364

Initial support at 1348 (Feb 8 low) followed by 1343 (Feb 7 low). Initial resistance is now at 1371 (Jan 20 high) followed by 1379 (Jan 19 high).



Oil - 86.80

Initial support at 86.00 (Intraday Support) followed by 85.00 (Intraday Support). Initial resistance is now at 88.00 (Intraday Resistance) followed by 90.00 (Intraday Resistance).





Written by Anthony Darvall