By Easy-Forex | Daily Market Analysis | Tue, Mar 27, 2012
U.S.
Dollar Trading (USD) the market had been waiting for clarification from
the FED in recent weeks since the rally in Bonds suggested there was a
fresh debate on future US monetary policy. The FED Chairman squashed
this debate overnight suggesting even more easing is possible to ensure
that US economy has strong growth going forward. Looking ahead, Jan Case
Shiller house prices forecast -0.6 vs. -1.1% previously m/m.
The
Euro (EUR) The EUR/USD bulls seized the Bernanke comments to rally past
1.3300 and tested 1.3360 before consolidating the gains. The outlook is
strong now with the USD strength all based on the US FED changing its
course on monetary policy earlier than forecast. 1.3500 is the next
major target. The Sterling (GBP) the GBP/USD broke back above 1.5900
retested the 1.5975 year highs. The 1.6000 key big figure is within
striking distance and should be tested in the next 24 hours in the
absence of fresh negative news. Looking ahead, UK March CBI distributive
Trades forecast at -6 vs. -2 previously.
The
Japanese Yen (JPY) USD/JPY grinded higher against the USD weakness with
the Yen crosses roaring higher overnight. The Crosses are providing
much of the Yen Weakness pushing the major up toward Y83 but the outlook
is for range trading as the two safe havens are evenly matched.
Australian Dollar (AUD) the AUD/USD buyers are cautious although we
broke above the 1.0500 with last week China related selling still fresh
in trader’s minds. The AUD/JPY is on the rally and will support if a
fresh stock rally begins from Bernanke’s comments. Looking ahead, RBA
Governor Speaks to Parliament.
Oil
& Gold (XAU) Gold soared as the QE3 door reopened and is the most
bullish news the precious metal could have received with it trading now
back above $1680. Oil struggled to take full advantage of the bullish
stocks and weak USD as the price is already elevated on Middle Eastern
concerns.
Pairs to watch
XAU/USD $1700 today?
AUD/USD the Risk Currency a buy again?
TECHNICAL COMMENTARY
Currency
|
Sup 2
|
Sup 1
|
Spot
|
Res 1
|
Res 2
|
EUR/USD
|
1.3134
|
1.3192
|
1.3360
|
1.3380
|
1.3486
|
USD/JPY
|
81.97
|
82.38
|
82.90
|
84.26
|
85.00
|
GBP/USD
|
1.5771
|
1.5801
|
1.5965
|
1.6000
|
1.6090
|
AUD/USD
|
1.0336
|
1.0427
|
1.0525
|
1.0596
|
1.0637
|
XAU/USD
|
1605.00
|
1625
|
1688
|
1690
|
1709
|
OIL/USD
|
105.00
|
106.00
|
107.10
|
107.50
|
108.00
|