Gold (XAU) Recovers; Closed at $1,827 | Learn Forex | GoLearnForex.com

Gold (XAU) Recovers; Closed at $1,827

Written by article default Monday, 29 August 2011 15:16

USD Dollar (USD) – In forex trading, the Dollar slumped against the other major currencies after Bernanke did not comment on a third quantity ease plan for QE3 during his speech, but affirmed that the FED has tools that could be used to provide additional monetary stimulus, as economic recovery has been weaker than expected and then shifted focus to September 2^nd, the day of the FOMC meeting. The Preliminary GDP came out at 1%, worse than the expected at 1.1%. U.S. Stock Markets advanced as the Dow Jones rose by 1.21% and the NASQAQ gained 2.49%. Crude oil closed at $85.50 a barrel but remains strongly under range; this commodity has been trading for a fourth day between the 83 - 86.4 areas and will stay capped unless those boundaries are finally breached. Gold (XAU) recovered aggressively to trade above the 1800 zones and closed at $1,827 an ounce. Today, the Pending Home Sales are expected at -0.8% vs. 2.4% previously.

Euro (EUR) – The Euro advanced against the US Dollar and reached the 1.45 area after the FED said that the US economy isn’t weak enough to warrant immediate additional stimulus but it might be in the future. Breaching the resistance level of 1.4570 might extend gains for the pair; otherwise the pair will decline to the 1.4440 level. Overall, the EUR/USD traded with a low of 1.4328 and with a high of 1.4502. Today, the ECB President is expected to speak on the debt crisis.

EUR/USD – Last: 1.4484

British Pound (GBP) – The Pound gained against the Dollar and was back to trading above the 1.63 area, recovering from the week’s lows. The Revised GDP came out as expected at 0.2%. As long as the GBP\USD is trading below 1.6400 levels, the trend of the pound is bearish. The Moving Average indicator supports a downtrend as well; the next support level on the one hour chart is at 1.6250. Overall, the GBP/USD traded with a low of 1.6206 and with a high of 1.6377. Today, UK Banks will be closed in observance of the Summer Bank Holiday.

GBP/USD - Last: 1.6369

Japanese Yen (JPY) – The Yen gained against the US Dollar after Federal Reserve Chairman Ben S. Bernanke disappointed investors and did not supply more market stimulus at this stage. Holding above the critical support level of 76.40 keeps the momentum positive for the USD/JPY pair. Overall, the USD/JPY traded with a low of 76.48 and with a high of 77.51. Today, the Retails Sales are expected to come out unchanged at 1.2%.

USD/JPY-Last: 76.69

Canadian dollar (CAD) – The Canadian Dollar rose for the first time against the US Dollar after 4 weeks as equities gained on Bernanke’s comment that the U.S. economy will probably recover during the second half of this year. As long as the pair is trading above the 0.9800 levels, the trend of the US Dollar is positive and the next resistance level on the daily chart is located at 0.9925. Overall, USD/CAD traded with a low of 0.9807 and with a high of 0.9922. No economic data is expected today.

USD/CAD - Last: 0.9798