UFXBank Daily Review - January 12, 2010

Written by ForexCult Team
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Daily Review 12/01/2010 

USD Dollar (USD) – The Dollar remained weak against most currencies, as a risk appetite has been triggered and signs of a global economic recovery boosted demand for higher-yielding and commodity linked currencies. Wall Street finished mixed as Dow Jones rose by 0.43% and NASDAQ depreciated by -0.21%. Crude oil rose to new high during the session but then dropped and closed with -0.62% change at 82$ a barrel. Gold (XAU) soared and closed at 1150.7$ an ounce. Today, The Trade Balance index is expected at -34.5B vs. -32.9B previously.

EURO (EUR) – The Dollar traded at almost a 3 week low against the Euro on increased speculation that the Federal Reserve will maintain its policy of keeping interest rates at their record lows as the U.S. labor market remains weak. The French Industrial Production came out 1.1% better than 0.4% expected. EUR/USD has been struggling to remain above 1.45 and has a major resistance at 1.47 as the 50 and 100 moving day averages collide. As long as it holds above 1.4480 the Euro remains bullish. Overall, EUR/USD traded with a low of 1.4401 and with a high of 1.4555. Today, no economic data expected.

EUR/USD – Last: 1.4505

Resistance    1.456    1.459    1.463
Support    1.448    1.444    1.4415