UFXMarkets -Daily Gold & Forex Trading News-26-September-2011

Hello, it’s Monday, September 26, 2011 and
I’m Martin Smith with the daily outlook from UFX Markets. The Dollar continued with its bullish trend
against the other major currencies as the Fed said they saw “significant downside
risks” to the U.S. economy, and the European debt crisis continued to be at the top of
the news, leading investors to stick with the US Dollar as a refuge investment. Wall
Street closed bullish after dropping three days as NASDAQ increased by 1.12% and Dow
Jones by 0.35% respectively. Crude oil weakened by 0.5%, closed at $80.50 a barrel. Gold (XAU)
plunged by 6.0% as investors sold the metal to cover losses in other assets, finishing
the day at $1632 an ounce. Today, New Home Sales are expected to be 293K vs. 298K prior. The Euro erased some losses against the Dollar
as European officials announced that they would be taking steps to prevent further debt
contagion in the euro region. The EUR/USD’s momentum is bearish as long as the pair remains
below 1.3800. The next support level on the daily chart is 1.3400. Overall, EUR/USD traded
with a low of 1.3418 and a high of 1.3567. The Pound fell for a third consecutive days
against the Dollar amid speculation the Bank of England will respond to slowing global
economic growth after saying they may need to buy more bonds to keep borrowing costs
capped. As long as the GBPUSD is trading below 1.5860 the trend for the pound is still
very negative. The next support level on the daily chart is at 1.5350. If the pair breaks
below this level the pound might slump to 1.5120. Overall, GBP/USD traded with a low
of 1.5359 and a high of 1.5491. No economic data is expected today. The Yen fluctuated against the major pairs
on Friday as a positive day for the stock market and the Dollar caused instability in
the Yen. The USD/JPY has been struggling at 76.50 in the past few days. As long as the
pair is trading below 77.20 the Yen is the more attractive. The next support line on
the daily chart is at 76.00 level. Overall, USD/JPY traded with a low of 76.15 and a high
of 76.88. No economic data is expected today. The Canadian Dollar weakened versus the Dollar
due to weakening oil prices. As long as the pair is trading above 1.0100 the trend of
the US Dollar is very positive. The moving average indicator on the daily chart also
supports a bullish trend. Next resistance on the daily chart is at 1.0355. Overall,
USD/CAD traded with a low of 1.0224 and a high of 1.0348. No economic data is expected
today. Well, that’s all for today. Be sure to visit
us at UFXMarkets.com, your source for online trading.

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