The Forex Profiteer: Daily Forex Outlook

Tuesday, August 22, 2006

Daily Forex Outlook - Tues 22nd Aug 06

U.S. Dollar Trading was mixed against the majors

Tue, 22 Aug 2006 02:24:56 GMT
by Easy Forex Team

CURRENCY TRADING SUMMARY

U.S. Dollar Trading (USD) was mixed against the majors in the overnight foreign exchange trading session as the USD fell against all major currencies except the JPY which seemed to go against the trend. With no data released from the US, the market eyed rising oil prices and developments in the Middle East for direction. In other markets, the Dow Jones index fell by 36pts while the NASDAQ gave up 16pts as rising oil prices and earnings downgrades hampered any advances in the share markets. Crude oil rose by USD$1.31 to USD$72.45 a barrel as the chances of sanctions being imposed on Iran have risen due to their determination in continuing to progress with their nuclear program. Looking ahead, the Richmond Federal manufacturing index is due out today.
The Euro (EUR) traded within a low of 1.2828 and a high of 1.2938, before closing at 1.2892 in the New York session. On the data front, Eurozone trade balance came in at +2Bln surplus compared to a -1.0Bln deficit forecast. Looking ahead, current account and the ZEW survey are due out today.
The Japanese Yen (JPY) traded within a low of 115.36 and a high of 115.97 versus the dollar, before closing at 115.86 in the New York session. Looking ahead, trade balance is due out tomorrow.

The Sterling (GBP) traded within a low of 1.8809 and a high of 1.8997, before closing at 1.8924 in the New York session.

The Australian Dollar (AUD) traded within a low of 0.7590 and a high of 0.7643, before closing at 0.7630 in the New York session.

Gold (XAU) rose strongly by US$13.50 to US$628.10 an ounce on the back of stronger crude oil prices and a weaker USD.

TECHNICAL COMMENTARY

Euro 1.2865

Initial support at 1.2823 (Aug 21 low) followed by 1.2781 (Aug 18 low). Initial resistance is now located at 1.2941 (Aug 21 high) followed by 1.298 (Jun 5 trend high).

Yen 116.15

Initial support is located at 115.04 (61.8% retracement of the 113.97 to 116.76 advance) followed by 114.63 (76.4% retracement of the 113.97 to 116.76 advance). Initial resistance is now at 116.19 (Aug 17 high) followed by 116.39 (Aug 16 low).

Pound 1.8905

Initial support at 1.8807 (Aug 21 low) followed by 1.8775 (Aug 18 low). Initial resistance is now at 1.9026 (Aug 16 high) followed by 1.9146 (Aug 8 trend high).

Australian Dollar 0.7615

Initial support at 0.7562 (Aug 17 low) followed by 0.7546 (38.2% retracement of the 0.7269 to 0.7717 advance). Initial resistance is now at 0.7649 (61.8% retracement of the 0.7702 to 0.7562 decline) followed by 0.7702 (Aug 16 high).

Gold 626

Initial support at 607.67 (Aug 18 low) followed by 602.99 (Jul 24 low). Initial resistance is now at 633.1 (Aug 14 high) followed by 645 (Aug 11 high).

Published on Tue, 22 Aug 2006 02:24:56 GMT