UFXBank Daily Review - February 24, 2010

Written by ForexCult Team
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Daily Review 24/2/2010

USD Dollar (USD) – The Dollar gained versus the other majors after disappointing Consumer Confidence raised Risk Aversion again. CB Consumer Confidence came out weaker with 46 versus 55 forecast. NASDAQ and Dow Jones finished lower with -1.28% and -0.97% respectively near their session lows after disappointing consumer confidence reading and a stronger Dollar. Crude Oil declined by -1.81% closing at 78.86$ a barrel. Gold (XAU) weakened by -0.89% closing at 1,102.7$ an ounce. Today, New Home Sales are expected higher with 354K versus 342K prior. Fed Chairman Bernanke will testify in Washington on the semiannual monetary policy. Crude Oil Inventories are expected with 1.8M versus 3.1M prior, volatility in Crude prices is expected. 

EURO (EUR) –The Euro dropped after German Ifo Business Climate declined for the first time in 11 months. German Ifo Business Climate came out 95.2 versus 96.2 expected. German Chancellor Angela Merkel criticized recent speculations against the Euro. Overall, EUR/USD traded with a low of 1.3497 and a high of 1.3692. EUR/USD has failed to remain above the 1.3650 resistance level, and a continuance of the main downtrend below 1.35 is likely. Today, Gfk Consumer Climate is expected slightly lower with 3.1 versus 3.2 prior. Industrial New Orders are expected with -1.1% versus 2.7% prior.
EUR/USD - Last:  1.36

Resistance    1.3575    1.3625    1.3675
Support    1.3485    1.3455    1.34

British Pound (GBP) &ndash