Weak US Data Moves Tight Markets

Daily Forex Fundamentals | Written by Crown Forex | Jul 24 08 14:34 GMT |


The markets were rather steady since the morning as the dollar was able to retain its gains since yesterday and managed to take down the pound that was resilient yesterday supported by steady rates as the BoE minutes showed. Nonetheless as the famous data from the housing sector showing more than expected declines in the housing sector spreading again woes over the economy especially they followed weekly claims that shot 400 red danger zones.

The euro started to recuperate especially as its generally trading in oversold areas on various time scales. It was capable to hit the high for the day at 1.5713 as now the strong resistance that might face the euro is at 1.5756, while if it does not manage to close positive and fall again to its low set at 1.5637 especially if trading was seen solid with closings below 1.5670 the downside will extend to the following correction level which is 61.8% at 1.5584 yet the mentioned level before the 50.0% is actually solid and trading was around it with not much closing below it.

Sterling was mainly weakened by its data as the euro as it was a bad day for Europe today; sterling breached a number of strong levels ending with the 1.9820s which held the pair now aiming above trading at the strong resistance of 1.9870 to head then to 1.99 levels once more. Sterling needs upside correction now to provide further downside momentum as it's heavily saturated with selling orders.

The heavily overbought USDJPY pair defied momentum to continue aiming at 108 levels which neared as the high was set at 107.97 yet with the weak US data the pair was able to once more head lower to set its low for the day at 107.41 as the 107.30-10 are also strong support for the pair yet breaching them opens the way till 106.80 which is so might provide momentum for the pair to attempts 108 once more.

Crown Forex

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