Easy Forex

CURRENCY TRADING SUMMARY
U.S. Dollar Trading (USD) while initially stronger fell off against the majors in the Friday night foreign exchange trading session as a strong retail sales release prompted profit taking after the recent run in the greenback. Retail sales for December came in at 0.9% compared to a 0.6% rise previously. With most of the US fourth-quarter data coming in above forecasts, investors have rolled back interest rate cut expectations from the Federal Reserve. In other markets, the Dow Jones index climbed 41pts and the NASDAQ added 17pts as the market took comfort that moderating price pressures will keep interest rates steady. Crude oil jumped US$1.17 to US$53.06 a barrel as worries increased OPEC would cut production to stem the 15% drop in oil prices recently. Looking ahead, the US is on holiday Monday to commemorate Dr. Martin Luther King Jr. 

The Euro (EUR) traded within a low of 1.2865 and a high of 1.2945, before closing at 1.2921 in the New York session. 

The Japanese Yen (JPY) traded within a low of 120.16 and a high of 120.74 versus the dollar, before closing at 120.39 in the New York session. On the data front, Japanese Finance Minister Koji Omi said on Friday that Japan is not planning to alter the composition of their fx reserves (second largest in the world mainly held in US dollars). Private machinery orders came in at 3.8% compared to a 3.4% estimate. 

The Sterling (GBP) traded within a low of 1.9427 and a high of 1.9610, before closing at 1.9570 in the New York session.

The Australian Dollar (AUD) traded within a low of 0.7782 and a high of 0.7839, before closing at 0.7836 in the New York session.

Gold (XAU) rose by US$13.00 to US$626.90 an ounce in response to a weaker greenback, stronger oil, and short-covering ahead of long weekend.

Euro 1.2930
Initial support at 1.2865 (Jan 12 low) followed by 1.2821 (61.8% retracement of the 1.2483 to 1.3368 advance). Initial resistance is now located at 1.3016 (Jan 11 reaction high) followed by 1.3054 (Jan 9 high and key intraday resistance).

Yen 120.25
Initial support is located at 119.5 (Jan 11 low) followed by 119.14 (Jan 10 low). Initial resistance is now at 120.74 (Jan 12 trend high) followed by 121.07 (Dec 12, 2005 high).

Pound  1.9595
Initial support at 1.9426 (Jan 12 low) followed by 1.9316 (Jan 10 corrective low). Initial resistance is now at 1.9624 (61.8% retracement of the 1.9753-1.9261 decline) followed by 1.9753 (Jan 3 reaction high).

Australian Dollar  0.7845
Initial support at 0.7759 (Jan 10 low) followed by 0.7732 (Nov 24, 2006 low). Initial resistance is now at 0.7855 (Jan 5 high) followed by 0.7871 (50% retracement of the 0.7982-0.7759 decline).

Gold  627
Initial support at 610.0 (Jan 12 low) followed by 602.2 (Jan 5 corrective low). Initial resistance is now at 627.7 (Jan 12 high) followed by 645.0 (Jan 3 reaction high).