Reviewed Forex Trading

USD Dollar (USD) – The US Dollar strengthened versus most major currencies as risk aversion grew following the S&P rating agency downgrading of 15 Spanish based financial institutions and after Moody’s downgrading of Italian, Spanish and Portuguese Ratings. The Greek Parliament passed the package of cuts needed to complete the next step towards securing the second bailout of at least 130 billion Euro and avoid a chaotic default. Wall Street closed positive as Germany and the European Commission welcomed Greek approval of the austerity steps required for a financial lifeline. The Dow rose by 0.57% and the NASDAQ gained by 0.95%. Crude oil rose by 1.90% to a one-month high after the Greek parliament approved an austerity plan, easing Europe’s debt crisis. Sanctions tightened on Iran as Crude Oil closed at $100.80 a barrel. Gold (XAU) fell by 0.10%, to close at $1719.00 an ounce. Today, Core Retail Sales are expected to grow by 0.60% vs. -0.20% previously and Retail Sales are expected to grow by 0.80% vs. 0.10% previously, Treasury Secretary, Geithner, is expected to speak.

Euro (EUR) – The Euro fell versus the Greenback after Moody’s Investors Service cut the debt ratings of six European countries including Italy, Spain and Portugal, sapping demand for riskier assets. Despite the fact that Greek Prime Minister, Lucas Papademos, won approval from parliament for austerity measures to secure a second package of aid from the European Union and International Monetary Fund. At the same time, Standard & Poor’s Ratings Services downgraded 15 Spanish based financial institutions after taking similar action on Italian banks last week. The EUR/USD’s momentum is negative below the 1.3250 level and as long as the pair is trading below this level the Euro may continue to weaken. Overall, the EUR/USD traded with a low of 1.3180 and with a high of 1.3283. Today, the German ZEW Economic Sentiment is expected at-11.8 vs.-21.6 previously and Industrial Production is expected to fall by -1.1% vs. -0.1% previously.

EUR/USD – Last: 1.3150

British Pound (GBP) – The Pound extended its losses versus the US Dollar as Moody’s Investors Service said that Britain risks losing its top-grade credit rating if the economy deteriorates. The GBP\USD’s momentum remains bearish below the 1.5770 level. The next support level on the 4 hour chart is located at 1.5700 and breaking this level will probably cause the Pound to decrease toward the 1.5600 level. Overall, the GBP/USD traded with a low of 1.5709 and with a high of 1.5813. Today, the CPI is expected to grow by 3.6% vs.4.2% previously and the BOE Inflation Letter is expected to be released.

GBP/USD – Last: 1.5710

Japanese Yen (JPY) – The Dollar posted another positive day against the Yen after the BOJ left its overnight call rate at 0.10% as expected. The USD/JPY’s momentum is bullish as long as the pair is trading above the 77.20 level. Overall, the USD/JPY traded with a low of 77.50 and with a high of 77.79. No economic data is expected to be released today.

USD/JPY-Last: 77.90

Canadian dollar (CAD) – The Canadian Dollar fell from a 3 month high versus its US counterpart as risk sentiment deteriorated. The currency, which is linked to Commodities, lost ground despite crude oil gains. As long as the pair is trading below the 1.0040 level, the US Dollar’s momentum is still negative. Overall, the USD/CAD traded with a low of 0.9971 and with a high of 1.0010. No economic data is expected to be released today.

USD/CAD – Last: 1.0015                 

USD Dollar (USD) – The US Dollar closed mixed against the major currencies as Greece failed to reach an agreement with its creditors signaling a potential default, making higher yielding assets unstable. Wall Street closed negative as the S&P decreased by 0.04% and the Dow Jones by 0.13% respectively. Crude oil weakened by 1.00%, closing at $96.91 a barrel, Gold (XAU) declined by 0.77%, finishing at $1717.35 an ounce. Today, the Fed Chairman, Bernanke, will speak.

Euro (EUR) – The Euro fluctuated versus the Dollar as an unresolved Greek debt agreement added to concern that the region’s fiscal crisis is far from over. The EUR/USD’s momentum is positive above the 1.3100 level and as long as the pair is trading above this level, the Euro may continue to rise. It will probably break up at the next resistance level of 1.3150 and the moving average indicators on the daily chart support an uptrend. Overall, the EUR/USD traded with a low of 1.3027 and with a high of 1.3141. Today, the German Industrial Production is expected to decline from -0.6% to -0.1%.

EUR/USD – Last: 1.3100                

British Pound (GBP) – The Pound gained slightly versus the Dollar after the Halifax HPI data was released better than the analysts forecast at 0.6% vs. 0.1%. TheGBP\USD’s momentum is bullish after breaking the 1.5800 level. The next resistance level on the 4 hour chart is located at 1.5850 and breaking this level will probably cause the Pound to increase toward the 1.5900 level. Overall, theGBP/USD traded with a low of 1.5730 and with a high of 1.5840. No economic data is expected to be published.

GBP/USD – Last: 1.5808

Japanese Yen (JPY) – The Yen traded inconstant versus the Dollar, closing almost unchanged as an unclear momentum in the higher yielding assets caused the pair to close steady. The USD/JPY’s momentum is bearish as long as the pair is trading below the 76.80 level and only if the pair breaks up this level will the Dollar be attractive again. The next support level is located at the 76.40 level. Overall, the USD/JPY traded with a low of 76.49 and with a high of 76.80. No major economic data is expected to be published.

USD/JPY-Last: 76.72

Canadian dollar (CAD) – The Canadian Dollar weakened against the US Dollar following a positive Dollar and negative oil prices on news coming out of Greece. As long as the pair is trading below the 1.0000 level, the US Dollar’s momentum is negative. The next support level on the one hour chart is located at the 0.9920 level and breaking this level will probably cause the pair to decrease toward the 0.9870 level. Overall, the USD/CAD traded with a low of 0.9929 and with a high of 0.9993. Today, the Building Permits are expected to become positive from -3.6% to 0.2%.

USD/CAD – Last: 0.9963