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U.S. Dollar Trading (USD) markets spent most of the day consolidating at recent highs. The USD is under heavy selling pressure across the board with Silver and Gold the clearest examples. The FOMC meeting this week is building as a possible game changer with FED Chief Bernanke holding a press conference directly after for the first time. In US stocks, DJIA +53 points closing at 12506, S&P +7 points closing at 1337 and NASDAQ +17 points closing at 2820. Looking ahead, March New Home Sales forecast 280k vs. 250k previously.
The Euro (EUR) was well supported above the 1.4500 handle on bullish comments from China’s official in Europe ‘possible we will purchase more sovereign bonds’. EUR/JPY has stabilized after falling back from highs and is looking to retest Y120 in coming session for a resumption of the uptrend. Overall the EUR/USD traded with a low of 1.4532 and a high of 1.4588 before closing the day around 1.4547 in the New York session. Looking ahead, Bank Holiday for Easter Monday.
The Japanese Yen (JPY) remained at the Y82 level for most of the day with little news. Over the weekend the BOJ Gov talked down the economy stating that the earthquake could push the economy back into recession and this could lead to Yen weakness on Monday. Overall the USD/JPY traded with a low of 82.10 and a high of 82.10 before closing the day around 81.90 in the New York session.
The Sterling (GBP) consolidated in a tight range above 1.6500 with the market ready to press higher after breaking key resistance last week. EUR/GBP is still above 0.8800 and could fall back to 0.8500 if the Pound Plays catch up in coming weeks. Overall the GBP/USD traded with a low of 1.6500 and a high of 1.6568 before closing the day at 1.6519 in the New York session. Looking ahead, Bank Holiday in the UK.
The Australian Dollar (AUD) strong Oil and Gold led to solid AUD support which I remain close to 1.0775 all time highs. Overall the AUD/USD traded with a low of 1.0718 and a high of 1.0755 before closing the day at 1.0739 in the New York session. Looking ahead, Anzac Day Holiday in Australia.
Oil & Gold (XAU) spent the day above $1500 and is poised to make further gains after consolidating and profit taking ends. Overall trading with a low of USD$1500 and high of USD $1509 before ending the New York session at USD$1505 an ounce. Middle eastern tensions are continuing to intensify with deadly protests in Syria and Yen over the weekend. WTI Oil Closed +$0.65 at $112.10 a barrel.
Euro – 1.4550
Initial support at 1.4500 (Psychological Support) followed by 1.4328 (Apr 20 low). Initial resistance is now located at 1.4685 (Dec 14 2009 high) followed by 1.4736 (1.3752 plus 1.618 of 1.3428-1.4036)
Yen – 82.30
Initial support is located at 81.55 (Maar 29 low) followed by 81.31 (Mar 28 low). Initial resistance is now at 82.60 (Apr 21 low) followed by 83.27 (Apr 18 High).
Pound – 1.6500
Initial support at 1.6387 (April 21 low) followed by 1.6308 (Apr 20 low). Initial resistance is now at 1.6599 (Apr 21 high) followed by 1.6672 (Dec 4 2009 high).
Australian Dollar – 1.0730
Initial support at 1.0677 (Apr 21 low) followed by the 1.0519 (Apr 20 low). Initial resistance is now at 1.0845 (0.9537 plus 0.618 of 0.8067-1.0183) followed by 1.0932 (1.0390 plus 0.618 of 0.9706-1.0584).
Gold – 1511
Initial support at 1487 (Apr 19 low) followed by 1477 (Apr 18 low). Initial resistance is now at 1513 (1157.03 plus 1.618 of 1044.85-1265.30) followed by 1517 (1381.22 plus 1308.25-1444.95).
Oil – 112.80
Initial support at 110.00 (Intraday Support) followed by 108.00 (Intraday Support). Initial resistance is now at 113.50 (Intraday resistance) followed by 115.00 (Intraday Resistance).
Written by Anthony Darvall