U.S. Dollar Trading (USD) strong data and weak commodities sent the Dollar higher across the board. Weekly Jobless Claims dropped to 404k vs. 445k previously. December Home Sales at 5.28m vs. 4.88m previously. In US stocks, DJIA -2 points closing at 11822, S&P -1 points closing at 1280 and NASDAQ -21 points closing at 2704.
The Euro (EUR) held strength better than most with the market bounded between 1.34-3500. News that the Irish PM had called a snap election was overlooked as was a moody downgrade warning of Portugal. EUR/USD traded with a low of 1.3395 and a high of 1.3525 before closing at 1.3460. Looking ahead, January IFO Business Climate forecast at 109.9 vs. 109.9 previously.
The Japanese Yen (JPY) bounced aggressively on strong US jobs and housing data to test Y83 in a widely noticed sigh on strength. Y83.50 has capped the major so far this year and will need to be broken to excite the bulls. Overall the USDJPY traded with a low of 82.04 and a high of 83.15 before closing the day around 82.90 in the New York session.
The Sterling (GBP) was sold back on weak stock markets with UK economic data also weighing. January CBI orders slipped to -16 vs. -3 forecast. Overall the GBP/USD traded with a low of 1.5835 and a high of 1.6013 before closing the day at 1.5910 in the New York session. Looking ahead, December Retail Sales are forecast at -0.3% vs. 0.3%.
The Australian Dollar (AUD) was crushed in the US session as copper fell over 3% and the USD surged on strong data. The tone and mood towards the Aussie has changed markedly with the market finding itself caught long AUD against many pairs. Overall the AUD/USD traded with a low of 0.9830 and a high of 0.9982 before closing the US session at 0.9850.
Oil & Gold (XAU) was crushed lower by the strong USD and EURO. Overall trading with a low of USD$1342 and high of USD $1372 before ending the New York session at USD$1347 an ounce. Oil led the commodity sell off down $2 a barrel. WTI Oil Closed -$1.90 at $89.60 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3455
Initial support at 1.3369 (Jan 19 low) followed by 1.3245 (Jan 17 low). Initial resistance is now located at 1.3634 (Nov 23 high) followed by 1.3786 (Nov 22 high)
Yen - 83.00
Initial support is located at 81.89 (Jan 5 low) followed by 81.61 (Jan 4 low). Initial resistance is now at 83.15 (Jan 13 high) followed by 84.11 (Dec 20 high).
Pound - 1.5900
Initial support at 1.5878 (Jan 18 Low) followed by 1.5719 (Jan 13 low). Initial resistance is now at 1.6039 (Jan 19 high) followed by 1.6184 (Dec 12 High).
Australian Dollar - 0.9850
Initial support at 0.9804 (Jan 12 low) followed by the 0.9753 (Dec 8 low). Initial resistance is now at 1.0009 (Jan 20 High) followed by 1.0077 (Jan 19 high).
Gold - 1348
Initial support at 1341 (Nov 19 low) followed by 1335 (Nov 18 low). Initial resistance is now at 1371 (Jan 20 high) followed by 1379 (Jan 19 high).
Oil - 89.50
Initial support at 89.00 (Intraday Support) followed by 88.00 (Intraday Support). Initial resistance is now at 90.00 (Intraday Resistance) followed by 91.50 (Intraday Resistance).
Written by Anthony Darvall