Tuesday, August 2, 2011

Market Morning Review - August 3, 2011

Coming Up Today (All times GMT)

The US Dollar on Tuesday the 2nd of August has been losing ground against a basket of currencies, while Congress passed a deficit cutting package there were increased worries about a downgrade of the U.S credit rating. 

Market participants are waiting for this week the employment data for U.S and also the Bank of Japan’s monetary policy-setting meeting. The US dollar versus the swissy fell to new record lows and found support at the 0.7608 level while the 0.7770 is expected to hold any pull back. Against the Japanese yen the greenback remained in sideways around the 77.25 level with resistance at the 77.78 level and support at the 76.94 level, investors are focusing at the BOJ’s meeting for a possible intervention in the market. 

Moreover the Australian dollar versus the US dollar dropped to the 1.0679 and created a support level there, after that June retail sales fell 0.1 percent against the previous month and were worse than expected. In the last trading session the AUDUSD has well corrected up touching the 1.0750 resistance which is expected to hold for the time being.

USDCHF Support/Resistance 0.7608/0.7770
USDJPY Support/Resistance 76.94/77.78


The Euro which has been trading near the 1.4215 remaining unchanged for the most of the day on Tuesday. The forex pair found support at the 1.4156 and held its ground there after a sharp move down on Monday. Moreover the 1.4283 resistance level was created after US spending fell and is the upper band of the range bound formation. The single currency has been under pressure after passing the increase at the US debt ceiling and fell heavily on Monday. The Euro/Swiss fell to record lows as sluggish global growth, worries that the US may lose the triple A credit rating and fresh concerns on Euro-zone debt crisis. All that have set a strong pressure on the Euro versus the swissy forex pair since the Swiss franc is considered a safe haven by investors. Against the Swiss franc the euro fell to the record lows at the 1.0790 creating a support level there while the 1.0890 level is expected to hold any correction up in the short term.

EURUSD Support/Resistance 1.4156/1.4283
EURCHF Support/Resistance 1.0790/1.0890

Published: 3 August, 2011
written by: Adamos Anastasiou , Analyst at Markets.com