UFXMarkets *Daily Forex Currency Trading News* 23-April-2012


Hello, it’s Monday, April 23, 2012 and I’m
Martin Smith with the daily outlook from UFX Markets. Stock markets finished the trading week mixed.
The Dow Jones gained by 0.50% while Nasdaq declined by -0.24%. Technically, as long as
Dow remains below 13,050 the chances of a breakdown rise. Nearly 180 of 500 S&P companies
will report their earnings this week. The US Dollar fell versus the Euro and Pound
after positive economic releases in Europe and the U.K. Positive sentiment across the
Euro region drags investors away from the Dollar but this week’s critical economic
data could provide a direction for the Dollar. No economic data is expected today. Gold (XAU) has been trading in a narrow range
during most of the trading session. Gold was unable to go above the 1655 resistance and
below the 1630 support. It could either breakdown or breakthrough, but until then a play within
the channel limits is preferred. –The Crude Oil May contract ended on Friday
and June’s contract starts rolling today. Technically, Oil is close to the daily support
of the uptrend line. Oil has a strong resistance at 104.60 and could head lower to touch the
support line around 102. The Euro gained on Friday following a strong
German Ifo Business Climate which came out better than expected with 109.90. Technically
speaking, the Euro is facing strong resistance around 1.3230 which unless broken could lead
it to fall back to 1.30. The ECB rejected Geithener-IMF calls to do more to stem the
debt crisis. This could have the potential to start another sell off in the Euro. Today,
German French and Flash Manufacturing and Services PMI will be released. The Pound has rallied strongly since Mid January
and is considered bullish as long as it remains above the 1.60 level. GBP/USD is near a strong
resistance level at 1.6160 which if breached could lead to continuance of the rally. The commodity linked currencies such as the
Australian Dollar continue to trade within small ranges as the economic conditions remain
unclear. AUD/USD keeps trading in a downward channel. Breaking the strong support level
of 1.0200 could cause it to test the next support level of 1.0100.

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