| FOREX Daily Outlook by Easy-Forex.com |  |
USD soars on weakening EURO
CURRENCY TRADING SUMMARY – 8th August 2008 (00:30GMT)
· U.S. Dollar Trading (USD) took another leg up as the recent USD rally continued. US data was mixed with weekly Jobs claims soaring to a six year high of 455K. Pending homes sales surprised to the upside though coming in at 5.3% in June vs. expectations of -1%. Oil was volatile but ended up on supply concerns from a fire in Turkey. In the U.S. share markets, the NASDAQ was down 22 points (0.95%) and the Dow Jones was down 224 points (1.93%). Crude Oil closed up $1.44 ending the New York session at $120.02 per barrel. Looking ahead, Q2 labor Costs expected at 1.5% (previous 2.2%) and Productivity at 2.5% (previous 2.6%).
· The Euro (EUR) was sold heavily as ECB President talked about slowing growth in the ECB post rate press conference. The ECB held rates at 4.25% and although Trichet spoke about inflation the market responded to comments on growth. Overall the EUR/USD traded with a low of 1.5310 and a high of 1.5505 before closing the day at 1.5310 in the New York session. UPDATE EURO BREAKS 1.5300
· The Japanese Yen (JPY) gained as risk aversion entered the market on weaker US stocks. The USD/JPY held up well but EUR/JPY and GDP/JPY fell heavily as their respective majors slid. Overall the USDJPY traded with a low of 109.13 and a high of 109.81 before closing the day around 109.40 in the New York session.
· The Sterling (GBP) fell with the Euro as the Bank of England also held rates. No statement was released but recent economic data made the bias a cut in coming months. The Halifax House Price Index fell -1.7% last month. Overall the GDP/USD traded with a low of 1.9420 and a high of 1.9538 before closing the day at 1.9440 in the New York session.
· The Australian Dollar (AUD) fell as the USD strengthened but held up well against other currencies after the July Employment report surprised to the upside. July Unemployment change was +10.9K vs. +5K expected. Overall the AUD/USD traded with a low 0.9050 and a high of 0.9130 before closing the US session at 0.9080. UPDATE AUSSIE BREAKS 0.9000
· Gold (XAU) fell heavily bowing to USD strength although was supported by Oil. Overall trading with a low of USD$868.60 and high of USD$884.90 ending the New York session at USD$872 an ounce.
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.5145 | 1.5200 | 1.5235 | 1.5400 | 1.5500 |
| USD/JPY | 108.60 | 109.05 | 109.60 | 109.70 | 109.95 |
| GBP/USD | 1.9430 | 1.9355 | 1.9370 | 1.9440 | 1.9545 |
| AUD/USD | 0.8925 | 0.8955 | 0.9010 | 0.9075 | 0.9130 |
| XAU/USD | 858.00 | 970.00 | 871.00 | 886.00 | 894.60 |
· Euro – 1.5235
Initial support at 1.5200 (Aug 8 low) followed by 1.5145 (Mar 5 low). Initial resistance is now located 1.5400 (Aug 6 low) at followed by 1.5500 (round number).
· Yen – 109.60
Initial support is located at 109.05 (Aug 6 hrly low) followed by 108.60 (Jun and Feb tops). Initial resistance is now at 109.70 (AUG 7 high) followed by 110.12 (Jan 9 high).
· Pound – 1.9370
Initial support at 1.9355 (May 14 low) followed by 1.9340 (Jan 22 low). Initial resistance is now at 1.9440 (Aug 8 high) followed by 1.9545 (Aug 6 high).
· Australian Dollar – 0.9010
Initial support at 0.8955 (Mar 20 low) followed by 0.8925 (Feb 13 low). Initial resistance is now at 0.9075 (Aug 8 high) followed by 0.9130 (hourly resistance).
· Gold – 871
Initial support at 870 (Aug 5 low) followed by 858 (Jun 12 low). Initial resistance is now at 886 (Aug 6 high) followed by 894.6 (Aug 5 high).
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