U.S. Dollar Trading (USD) was sold on weaker than expected US data with December Conference Board Consumer confidence slumping to 52.5 vs. 54.3 previously and Case Shiller HP falling -0.8% y/y in October. In US stocks, DJIA +9 points closing at 11585, S&P +1 points closing at 1259 and NASDAQ +4 points closing at 2666. Looking Ahead, Weekly Jobless Claims are forecast at 415k vs. 420k previously. Also released, Weekly Crude Oil Inventories at -2.8m vs. -5.3m previously.
The Euro (EUR) The Euro did well given the weak US data and strong stock environment reclaiming the 1.3200 level. The bears have failed to break 1.3000 over the last two weeks and are in danger of being caught short if attention turns to dollar weakness in coming sessions. EUR/USD traded with a low of 1.3083 and a high of 1.3241 before closing at 1.3225.
The Japanese Yen (JPY) the major fell below Y82 despite protests from Japanese officials about the recent strength in the Yen. Crosses remained stable though and could provide support if stock markets continue to rally. Overall the USDJPY traded with a low of 81.59 and a high of 82.40 before closing the day around 81.65 in the New York session.
The Sterling (GBP) bounced with the rest of the majors but is struggling to sustain gains as traders prefers other risk currencies to invest in. EUR/GBP is stable above 0.8500 and is a good cross to watch for general GBP strength or weakness. Overall the GBP/USD traded with a low of 1.5350 and a high of 1.5521 before closing the day at 1.5490 in the New York session.
The Australian Dollar (AUD) Traded fresh post float highs above 1.0180 with strong US investor sentiment and weak USD combining to push the commodity currency higher. Crosses are also remaining near record highs with the Aussie the most favored investment in the market lately. Overall the AUD/USD traded with a low of 1.0088 and a high of 1.0186 before closing the US session at 1.0170.
Oil & Gold (XAU) pushed higher grinding above $1410. Overall trading with a low of USD$1400 and high of USD $1414 before ending the New York session at USD$1411 an ounce. Oil Consolidated recent gains above $90 a barrel. WTI Oil Closed -$0.20 at $91.10 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3220
Initial support at 1.3073 (Dec 27 low) followed by 1.3055 (Dec 23 low). Initial resistance is now located at 1.3277 (50% retrace of 1.3499-1.3055) followed by 1.3359 (Dec 17 high)
Yen - 81.65
Initial support is located at 81.23 (76.4% retrace of 80.22-84.51) followed by 80.54 (Nov 9 low). Initial resistance is now at 83.17 (Dec 24 high) followed by 84.12 (Dec 20 high).
Pound - 1.5500
Initial support at 1.5345 (Sep 8 Low) followed by 1.5297 (Sep 7 low). Initial resistance is now at 1.5512 (Dec 28 high) followed by 1.5568 (Dec 21 high).
Australian Dollar - 1.0180
Initial support at 1.0040 (Dec 28 low) followed by the 0.9863 (Dec 20 low). Initial resistance is now at 1.0200 (Round Number) followed by 1.0300 (Round Number Support).
Gold - 1411
Initial support at 1382 (Dec 28 low) followed by 1372 (Dec 23 low). Initial resistance is now at 1414 (76.4% retrace of 1431.25-1361.39) followed by 1431 (Dec 7 High).
Oil - 91.10
Initial support at 90.00 (Intraday Support) followed by 89.00 (Intraday Support). Initial resistance is now at 92.50 (Intraday Resistance) followed by 95.00 (Intraday Resistance).
Written by Anthony Darvall