UFXBank Daily Review - February 10, 2010

Written by ForexCult Team
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Daily Review 10/2/2010

USD Dollar (USD) – The Dollar has weakened versus most majors after European Union officials signaled they will aid Greece in reducing its budget deficit. As the Euro's uncertainty lowered the demand for the Dollar as a safe haven waned. Dollar Index dropped by 0.7% as a result. NASDAQ and Dow Jones gained by 1.17% and 1.52% respectively as the Dollar weakened and uncertainty lowered. Crude Oil gained by 2.59% closing at 73.75$ a barrel. Gold (XAU) gained by 1.03% closing at 1,076.7$ an ounce. Today, Trade Balance is expected with -35.8B versus -36.4B prior. Crude Inventories are expected with 1.4M, volatility in Crude prices is likely. Federal Budget Balance is expected with -66.2B versus -91.9B prior.
EURO (EUR) –The Euro gained versus the Dollar after signals from EU officials about supporting Greece. EU nations were pressured by world markets to rescue Greece from its deficit in order to prevent it from dragging down the Euro and stock markets. Overall, EUR/USD traded with a low of 1.3649 and a high of 1.3839. EUR/USD has started correcting upwards after being oversold according to the RSI indicator. Continuance of the correction back up to 38.2% Fibonacci retracement at 1.3965 is possible. Today, French Industrial Production is expected with 0.6% versus 1.1% prior.

EUR/USD - Last:  1.3790

Resistance    1.3855    1.391    1.3945
Support    1.374    1.3695    1.367


British Pound (GBP)