Morning Forex Overview

Daily Forex Fundamentals | Written by Dukascopy Swiss FX Group | Jul 14 09 08:25 GMT |

Previous session overview Monday night saw the Dollar close low, EURUSD stood at 1.40, GBPUSD was seen at 1.6290. It was sold after the Dow rallied nearly 200 points to close at a 14-day high. Early Asian traders picked up cheap Dollars, but they were unable to drive EURUSD through support at 1.3965, positions were squared and the pair returned to 1.40. GBPUSD outperformed Euro this morning, extending the top to 1.6305 a short while ago. USDJPY traded through 92.60 in late Europe and never looked back. Up to 93.10 at the end of the New York session, the pair held on to form a base at 92.80 and extend the top to 93.30 in Tokyo. We are now trading close to key resistance at 93.60. Both JPY-crosses rose strongly, EURJPY reached a high of 130.65 while GBPJPY peaked at 152. Their moves were amplified by the weak Dollar. So far they remain underneath of their key resistance levels of 131.30-ish EURJPY and 152.50 GBPJPY. Market expectation Lots of market data this morning in Europe, starting with the German and European ZEW economic sentiment index for July. At 12.30 GMT US June Retail Sales and PPI will be released. Currency markets are likely to remain volatile. With Euro and Cable threatening to lift the July top on one side and a growing sentiment that the GBP rise may be very overdone on the other. There should be lots of trading interests and volatility. For now EURUSD 1.3850 / 1.4050 range persists, GBPUSD next strong resistance lies above 1.6360, support far lower at 1.61. USDJPY range 92.80 / 93.40 initially, a test of 93.60 seems imminent. A fall lower would confirm a medium-term outlook for a stronger YEN. EURJPY and GBPJPY are close to their resistance levels, a daily close above may scare the bears. On the other hand, the last days rally seem like an invitation to establish fresh short positions. Dukascopy Swiss FX Group Legal disclaimer and risk disclosure This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.