Sunday, July 3, 2011

Forex Morning Review - July 4, 2011

Coming Up Today (All times GMT)

  • 8:30am GBP Construction PMI
  • 10:00pm NZD NZIER Business Confidence

The US Dollar on the previous week has been affected mainly by news on Greece; since there was an agreement for a new austerity measure the risk appetite of the investors was improved.  Moreover, according to data from the Commodity Futures Trading Commission, currency speculators have reduced bets against the U.S dollar. The greenback was trading stronger versus the Japanese yen on Friday the 1st of July reaching the 81.06 resistance level and now is trading at the 80.72. Against the Swiss franc the US dollar extended its gains up to the 0.8520 resistance level and afterwards the 0.8460 support level held the corrective move.


The Euro on Friday against the greenback rose up to the 1.4575 resistance level supported mainly because of the agreement on a new austerity program, voted by the Greek parliament majority. On Saturday the euro zone finance ministers approved the release of the next tranche of 12 billion of emergency loans to Greece, remaining now the approval from IMF. The EURUSD forex pair is trading now at 1.4535, at its support level.  The euro versus the sterling is trading at the moment 0.9038 in a narrow range between the 0.9083 resistance level and the 0.9013 support level.

EURUSD Support/Resistance 1.4535/1.4575
EURGBP Support/Resistance 0.9013/0.9038


The sterling versus the greenback have been gaining ground on Monday morning reaching the 1.6089 resistance level, the previous week fell below the 1.60 psychological level on fears that Greece will default on its debt and the sovereign crisis will spread. However after reaching to consent for Greece’s austerity plan for the next  years, the pound bounced up to 1.6089 resistance level, while the 1.60 support level is expected to hold any dip down in the short term.

Support/Resistance: 1.6000/1.6089

Published: 4 July, 2011
written by: Adamos Anastasiou ,