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Forex Daily News: August 2, 2010 - USD Feeling Weak

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar weakened against other majors currencies after Growth in the U.S. slowed to a 2.4 percent annual rate in the second quarter, less than forecast, reflecting a larger trade deficit and cooler consumer spending. GDP came out at 2.4% vs. 2.7% prior. NASDAQ increased by 0.13% and Dow Jones a bit declined by 0.01%, crude oil rose by 0.8% closing at $78.95 a barrel, Gold (XAU) strengthened by 1.1% closing  at $1183.9 an ounce. Today, ISM Manufacturing PMI is expected to weak from 56.2 to 54.3, Fed Chairman Bernanke Speaks.

EURO (EUR) – The Euro was stable against the Dollar in Forex Trading as concern eased that the 16 nation region’s sovereign debt crisis will worsen and spread to the global economy. The resistance of the EUR/USD on the daily chart is located at 1.3110, if the pair succeeds to break this level the trend will be strongly bullish. Overall, EUR/USD traded with a low of 1.2980 and with a high of 1.3093. No majors news are expecting today.

EUR/USD – Last: 1.3082

Resistance

1.3110

Support

1.3045

1.2950

1.2870

British Pound (GBP) – The Pound strengthened versus the Dollar after reports added to evidence that the economic recovery is getting better, making interest rate increases more likely. As long the pair is trading above the resistance at 1.5660 on the daily chart the momentum is clearly bullish, the next support on the one hour chart is 1.5520. Overall, GBP/USD traded with a low of 1.5552 and with a high of 1.5721. Today, Manufacturing PMI is expected at 57.1 vs. 57.5 prior.

GBP/USD - Last: 1.5721

Resistance

1.5735

Support

1.5660

1.5545

1.5440

Japanese Yen (JPY) –The Yen rose to its strongest level this year against the Dollar as U.S. report on gross domestic product came out worse than expected, a sign the global recovery is losing momentum boosted demand for a refuge. The main resistance of the USD/JPY on the daily chart is 88.25 level, as long it's trading below this level a short position is preferred and the momentum is bearish, the next support is located at 86.00, the main momentum is clearly bearish. Overall, USD/JPY traded with a low of 85.94 and with a high of 86.82. There is no economic data today.

USD/JPY-Last: 86.56

Resistance

86.85

87.40

87.70

Support

85.95

Canadian dollar (CAD) – The Canadian Dollar strengthened versus the Dollar as an increase in commodities and equities succeeded to push the Canadian up. As long the USD/CAD is below 1.0400 levels the momentum is bearish, the next support on the daily chart is located at 1.0240. Overall, USD/CAD traded with a low of 1.0264 and with a high of 1.0376. No economic data is expected due to a bank holiday in Canada.

USD/CAD - Last: 1.0275

Resistance

1.0305

1.0395

1.0440

Support

1.0255