UFXBank Daily Review - January 21, 2010

Written by ForexCult Team
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Daily Review 21/01/2010 

USD Dollar (USD) – The Dollar strengthened versus most majors after the TIC Long-Term Purchases hit estimates and Building permits in the U.S. unexpectedly jumped in December, coming at 0.65M vs. 0.59M forecast and Wholesale prices in the U.S. rose at a slower pace in December, showing the economy is recovering without the immediate threat of inflation. NASDAQ and Dow Jones fell by 1.25% and 1.14% respectively. Crude oil  dropped by 1.78%, closing at 77.62$ a barrel and Gold(XAU) fell by 2.43% closed at 1112.60$ an ounce.  Today, Unemployment Claims are expected at 441K vs. 444K prior and Philly Fed Manufacturing Index is expected at 18.1 vs. 22.5 prior. 
EURO (EUR) – The Euro fell to a five-month low versus the Dollar as Greece’s bonds tumbled and German PPI which came worse than expected continued to push the currency down. Overall, EUR/USD traded with a low of 1.4081 and with a high of 1.4288. Euro's momentum is clearly downward; the main support on the daily chart is 1.4000.  Today, German Flash Services PMI is expected at 53.1 vs. 52.7 prior and Services PMI expected at 54.1 vs. 53.6 prior.
EUR/USD – Last: 1.4088

Resistance    1.4137    1.4220    1.4305
Support    1.4065       


British Pound (GBP) &ndash