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UFXBank Daily Review - February 2, 2010

Written by ForexCult Team
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Daily Review 2/2/2010

USD Dollar (USD) – The Dollar was mixed versus the majors after better than expected Manufacturing PMI and gains in equity markets led investors to bet on global economic recovery. ISM Manufacturing PMI came out stronger with 58.4 versus 55.5 expected. NASDAQ and Dow Jones gained by 1.11% and 1.17% respectively as a lift in energy stocks led by strong earnings from Exxon Mobil contributed to a broad incline. Crude Oil gained by 2.79% closing at 74.92$ a barrel on weaker Dollar and assaults on Nigerian oil facilities. Gold (XAU) gained by 2.22% closing at 1,107$ an ounce. Today, Pending Home Sales are expected with 0.4% versus -16% prior. 
 
EURO (EUR) –The Euro advanced versus the Dollar after 4 consecutive days of declines as demand for risk increased on bets global economic recovery will continue. Final Manufacturing PMI came out slightly better with 52.4 versus 52 forecast. Overall, EUR/USD traded with a low of 1.3852 and a high of 1.3938. EUR/USD oversold RSI conditions and support from the 200 weekly moving averages supported the pair and sent it upwards. EUR/USD is facing many resistance levels above and if unable to cross above them will return to its downtrend. Today, German Retail Sales are expected higher with 0.9% versus -1.7% prior.

EUR/USD - Last:  1.3930

Resistance    1.3945    1.399    1.4025
Support    1.385    1.3815    1.375

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