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Forex Daily News: July 27, 2010 - USD Down on Strong Home Sales

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar weakened against all currencies in Forex Trading as better than expected New Home Sales data was released at 330K vs. 310K expected. That drew investors to the markets and away from the currency’s risk. NASDAQ and Dow Jones rose by 1.19% and 0.97% respectively, crude oil declined slightly by 0.14% closing at 78.83$ a barrel, Gold (XAU) declined by 0.45%, closing  at 1183.10$ an ounce. Today, Consumer Confidence data is expected at 51.00 vs. 52.90 previous.

EURO (EUR) – The Euro rallied versus the Dollar and all majors, touching the monthly highs as EU stress tests results continue to be released, showing only a handful of bank not passing. Although many investors are skeptical about the positive conclusions from the stress tests, buyers keep seeing an opportunity. The main resistance of the EUR/USD on the daily chart is still 1.3030, and the daily trend remains up. A break above this resistance will indicate its continuation. The main support is located around 1.2700. Overall, EUR/USD traded with a low of 1.2846 and with a high of 1.3005. Today, German Consumer Climate data is expected at 3.6 vs. 3.5 previous and might affect the pair.

EUR/USD – Last: 1.2983

Resistance

1.3007

1.3028

Support

1.2966

1.2839

1.2791

British Pound (GBP) – The Pound rallied for the second day against the Dollar and all majors after Home prices fell by 0.1%, and a new proposal that the BoE will regulate the financial system even more was revealed. The pair has broken the 1.55 resistance, but closed beneath it. The trend for the GBP/USD remains bullish and until technical signs of reversal downwards appear, the momentum is positive, as it has been for weeks. Overall, GBP/USD traded with a low of 1.5371 and with a high of 1.5518. No important economic data is expected today for the Pound.

GBP/USD - Last: 1.5487

Resistance

1.5520

Support

1.5450

1.5348

1.5295

Japanese Yen (JPY) –The Yen rallied versus the dollar and most majors approaching the lows at 86.25, and getting closer to all time lows at 80 rice levels. The daily trend of the pair remains bearish, with a support at 86.25. A strong break down is not unreasonable and could become a shorting opportunity. Overall, USD/JPY traded with a low of 86.80 and with a high of 87.76. No economic data is expected today for the Yen.

USD/JPY-Last: 86.93

Resistance

87.39

87.71

Support

86.82

86.66

86.34

Canadian dollar (CAD) – The Canadian Dollar rallied even more for the second day against the USD after Canadian overnight interest rates rose to 0.75% last week, making Canada the first G-7 country to raise its rates in June. Policy makers stated they expect Canada’s economic activity to return to full capacity by the end of next year. The pair is close to important support levels around 1.03 price levels. Overall, USD/CAD traded with a low of 1.0301 and with a high of 1.0382. No economic data is expected for today.

USD/CAD - Last: 1.0321

Resistance

1.0351

1.0447

1.0502

Support

1.0302