Weekly Review: August 20-24, 2012

Trading week on Wall Street is expected to open today (Monday) in the background of the positive macro data released Friday and in light of the encourage statements of policy makers in Europe.

Investors still expect the central banks will announce extend actions to urge the markets. Since the macro scene will be sparse this week, investors will bear eyes to the interest protocols publish by the Fed, to try to find clues for another round of bond purchases (QE3).

As mentioned above, the positive macro data released over the weekend add to the positive sentiment and further brought the S&P 500 peak of four years.

European stock exchanges were closed sequentially in increases for the longest time since 2006 and added to the positive atmosphere. Beyond the positive macro data, this was the expression of German Chancellor Angela Merkel effect markets.

An effort to restore investor confidence Merkel declared in a meeting with Canadian equivalent that will do all possible to keep the unity of the Eurozone. Investors interpreted this statement as readiness for additional bond purchases and boosted the markets.

On Wednesday will be published data on home sales for July are expected to increase to -4.52 million, compared to 4.32 million the previous month. However, the highlight on this day will be publishing the interest protocols of the Fed for August.

Thursday will be published, like every week, unemployment claims for the last week, are expected to drop to -364 thousand, compared to 366 thousand claims registered in the previous week.

Technical review

EUR/USD
EUR/USD is trading at -1.2332 a decrease of 0.04% in writing.
The pair may find support at 1.2288 Friday low and resistance at- 1.2351 today high.

Meanwhile, the Euro gain strength against the British Pound and weakens against the Japanese Yen, when the EUR/GBP add a 0.07% to 0.7860 and EUR/JPY drop 0.01% to 98.10.

GBP/USD
The British Pound weakens against the U.S Dollar today, trading at 1.5683 a decrease of 0.07%.

The pair may find support at 1.5635 Thursday low and resistance at 1.5737 Friday high.

Meanwhile, the British Pound weakens against the Euro and against the Japanese Yen, while the EUR/GBP add a 0.07% to 0.7860 and the GBP/JPY drop 0.07% to 124.77.
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USD/CAD
The U.S Dollar weakens against the Canadian Dollar today, trading at 0.9885 a decrease of 0.04%.

The pair may find support at 0.9858 Thursday low and resistance at 0.9899 Friday high.

Meanwhile, the U.S Dollar gain strength against the Euro and against the British pound, while the EUR/USD drop 0.04% to 1.2332 and the GBP/USD drop 0.07% to 1.5683.
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WTI- Crude Oil
The WTI gain strength today, trading at 96.28 an increase of 0.29%. May find support at 94.94 Friday low and resistance at 96.36 today high.