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Forex Daily News: August 3, 2010 - USD Down on Manufacturing Data

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar weakened against most major currencies in Forex Trading as risk appetite was boosted by better than expected U.S. data on manufacturing activity which came out at 55.5 vs. 54.2 forecasts, succeeded to support risky assets instead of the dollar. Federal Reserve Chairman Ben Bernanke said rising wages would probably spur household spending in the next few quarters, even as weak job gains dragged down consumer confidence. The NASDAQ and Dow Jones rose by 1.80% and 1.99% respectively, crude oil jumped by 3.0% closing at $81.34 a barrel, Gold (XAU) strengthened by 0.1% and closing at $1185.4 an ounce. Today, Pending Home Sales are expected to become positive from -30.0% to 0.5%.

EURO (EUR) – The Euro strengthened to a three-month high versus the Dollar as a report showed U.S. manufacturing expanded for a 12th straight month. The pair has succeeded to break the resistance at 1.3110, therefore the momentum is strongly bullish, the next resistance is located at 1.3200 level. Overall, EUR/USD traded with a low of 1.3055 and with a high of 1.3195.

EUR/USD – Last: 1.3165

Resistance

1.3195

Support

1.3100

1.3050

1.2950

British Pound (GBP) – The Pound rose to the highest level in almost six months against the Dollar as a report showed U.K. manufacturing expanded for a 10th straight month in July, a sign the U.K. economy is recovering faster than some economists had forecast. 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 1.5665. Overall, GBP/USD traded with a low of 1.5700 and with a high of 1.5907.

GBP/USD - Last: 1.5876

Resistance

1.5910

Support

1.5720

1.5640

1.5520

Japanese Yen (JPY) –The Yen fell against most of his major as signs the global recovery is gaining momentum fueled investor appetite for riskier assets. The main resistance of the USD/JPY on the one hour chart is 87.00 level, as long it's trading below this level a short position is preferred and the momentum is clearly bearish, the next support is located at 85.90, the main momentum is clearly bearish. Overall, USD/JPY traded with a low of 86.32 and with a high of 86.88.

USD/JPY-Last: 86.37

Resistance

86.90

87.70

88.10

Support

86.15

86.00

Canadian Dollar (CAD) – The Canadian Dollar strengthened against the Dollar, reaching the strongest level since June 22, as futures on crude oil, the nation’s largest export, climbed 3.2 percent to $81.44 a barrel, succeeding to push the Canadian as well. As long the USD/CAD is below 1.0400 levels, the momentum is bearish, the next support on the daily chart is located at 1.0140. Overall, USD/CAD traded with a low of 1.0204 and with a high of 1.0290.

USD/CAD - Last: 1.0241

Resistance

1.0255

1.0345

1.0400

Support

1.0200