No Surprise in European Data, While dollar Still Soft

Daily Forex Fundamentals | Written by Crown Forex | Jul 25 08 10:18 GMT |

The dollar continues to lose grounds as today's data is to further confirm the ongoing weakness in the housing sector that is to prevail on the US economy, while the European data came much inline with expectations not much offsetting their rise against the depreciating greenback. The euro continued to find support from the 50.0% Fibonacci correction that the euro was not able to close below that level yesterday and continued to trade above it today, where it lead the rise today from there after setting the low at 1.5661 slightly below it the mentioned level which resides at 1.5670; the euro set the high at 1.5731 while facing now the upcoming strong level at 1.5756 which is the 38.2% correction for the last upside wave that took the euro to set a new all time high above 1.60 mark. The sluggish pace of growth in the second quarter at 0.2% was inline with expectations yet though still the very week it is better than the expected contraction. The pound continued to gain against the dollar especially after the momentum in gained from yesterday till today's lows of 1.9830 levels. The pound struck the high at the major resistance level at 1.9960 and to extend the upside the pound needs to breach above that level to target 2.0000 once more. Risk aversion and surging inflation in Japan both did the toxic combination to help the yen gain; though the pair reverted to the upside after setting the low at 106.57 though the strong support helped the pair bounce higher trading at 107.10s though short of its highest set at 107.30 over intraday terms the pair was heavily oversold and needed to head to the upside to gather momentum as still daily momentum indicators and direction support the downside that will set the pair to breach its lows to then extend till 105.50s. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.