UFXBank Daily Review - February 25, 2010

Written by ForexCult Team
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Daily Review 25/02/2010 

USD Dollar (USD) – The Dollar weakened against most majors after Federal Reserve Chairman Ben Bernanke told Congress that a weak job market and low inflation would likely allow the central bank to keep interest rates at very low levels for a long time. In addition, sales of new homes in the U.S. unexpectedly plunged in January to the lowest level on record, came out at 309K vs. 354K forecast. NASDAQ and Dow Jones increased  by 1.01% and 0.89% respectively, crude oil rose by 1.3% closed at 79.9$ a barrel, Gold(XAU) decreased by 0.45% closed at 1098$ an ounce. Today, Unemployment Claims are expected to decline from 473K to 461K, Core Durable Goods Orders is expected at 1.1% vs. 1.4%, Fed Chairman Bernanke Testifies.
EURO (EUR) – The Euro rose for the first time in three days against the Dollar as Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is in a “nascent” recovery that still requires low interest rates. GfK German Consumer Climate came out at 3.2 vs. 3.1 forecast, Industrial New Orders came out better than the forecast at 0.8% vs. -1.1%. The trend is clearly bearish, the moving average support a bearish trend as well, the first resistance on the daily graph is 1.37. Overall, EUR/USD traded with a low of 1.3503 and with a high of 1.3626. Today, German Unemployment Change is expected to rise from 6K to 18K, M3 Money Supply is expected to become positive 0.1% vs. -0.2% prior.
EUR/USD – Last: 1.3483

Resistance    1.3550    1.3625    1.3695
Support    1.3444