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Forex Daily News: July 13, 2010 - EUR/USD Slips from 8-week High

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar strengthened versus most majors on renewed demand for the Dollar as a refuge. Bernanke said that small businesses are having a tough time getting loans they need to expand or stay afloat and keep the U.S. economic recovery going, and this led investors to sell risky assets. The NASDAQ and Dow Jones advanced by 0.09% and 0.18% respectively, crude oil dropped for the first time in four days ,weakened by 1.5% closing at 74.9$ a barrel, and Gold (XAU) weakened  by 0.9% closing at 1198.7$ an ounce. Today, Trade Balance is expected at -39.3B vs. -40.3B; Federal Budget Balance is expected at -70.0B vs. -135.9B.

EURO (EUR) – The Euro fell from an almost two-month high against the Dollar and slid versus the Yen on speculation that tests to demonstrate the resilience of the region’s banking system will fail to assure investors. The EUR/USD has been trading upwards since last week and broke its resistance levels on the daily chart at 1.2500, therefore the momentum is bullish, as long the price is above 1.2500 a long position is preferred, the 10 moving average support a long trend as well. Overall, EUR/USD traded with a low of 1.2551 and with a high of 1.2645. Today, German ZEW Economic Sentiment is expected to weaken from 28.7 to 25.2.

EUR/USD – Last: 1.2592

Resistance

1.2650

1.2722

Support

1.2550

1.2480

British Pound (GBP) – The Pound dropped for a third day in a row versus the Dollar after Standard & Poor’s affirmed its AAA long term and A-1+ short term sovereign credit ratings on the U.K, maintaining a negative outlook. The GBP/USD has broken the support line at 1.5000 during the session, if the price trades below this level the momentum will be bearish   .Overall, GBP/USD traded with a low of 1.4948 and with a high of 1.5086. Today, CPI is expected at 3.2% vs. 3.4% prior, MPC Member Sentence Speaks.

GBP/USD - Last: 1.5028

Resistance

1.5085

1.5230

Support

1.5000

1.4950

Japanese Yen (JPY) –The Yen strengthened versus the Dollar after Japan’s stocks fell for the first time in three days, led by banks amid political uncertainty, led the investors to buy the yen as a safety asset. The main resistance of the USD/JPY is 89.20. As long it's trading below this level, a short position is preferred, but if it breaks this level the trend will be upwards. Overall, USD/JPY traded with a low of 88.39 and with a high of 89.15.

USD/JPY-Last: 88.64

Resistance

89.15

Support

88.35

88.0

87.40

Canadian Dollar (CAD) – The Canadian Dollar fell in Forex Trading for the first time in five days as stocks fluctuated, reducing the appeal of currencies from nations that depend on commodities for growth. As long the USD/CAD is below 1.0450 levels a short position is preferred, the momentum in the last few days is clearly bearish. Overall, USD/CAD traded with a low of 1.0300 and with a high of 1.0386. Today, Trade Balance is expected at 0.0B vs. 0.2B prior.

USD/CAD - Last: 1.0357

Resistance

1.0385

1.0455

1.0605

Support

1.0300