By Easy-Forex - The Dollar weakened against the major currencies in the overnight session as industrial production and net foreign security purchases came in weaker...

... than expected.

Industrial production fell 0.1% compared to a market expected 0.2% rise, while net holdings increased only US$46.7 billion compared to the US$60.0 billion expectation. The Philly fed fell moderately to 13.1 from 14.4 coming in stronger than the expected level of 11.0. In other markets, the Dow Jones lifted considerably driven mostly by comments from Federal Reserve Chairman Ben Bernanke who stated that inflation expectations were well managed. The Dow Jones index rose 198pts, while the NASDAQ increased by 58pts. Crude oil rose US36c to US$69.50 a barrel after an unexpected rise in oil inventory levels and a smaller than expected natural gas inventory. Looking ahead, US current account and consumer sentiment are due out today.

The Euro traded in a range of 1.2582 to 1.2658, before closing at 1.2636 in the New York session. On the data front, CPI was confirmed at 2.5% for May in line with expectations. Looking ahead, industrial production is due out today.

The Japanese yen traded in a range of 114.65 115.22 versus the dollar, before closing at 114.75 in the New York session.

The Sterling traded in a range of 1.8421 to 1.8548, before closing at 1.8490 in the New York session. On the data front, UK retail sales rose 0.5% in May, in line with expectation.

The Aussie traded in a range of 0.7382 to 0.7425, before closing at 0.7420 in the New York session.
Gold rose by US$3.80c to $570.30 an ounce with buyers coming in after the recent sell-off.

Euro 1.2645
Initial support at 1.2580 (June 13 low) followed by 1.2530 (Jun 13 low). Initial resistance is now located at 1.266 (June 15 high) followed by 1.2686 (Jun 9 high).



Yen 114.65
Initial support is located at 114.25 (June 13 low) followed by 113.56 (Jun 9 low). Initial resistance is now at 115.45 (June 13 high) followed by 115.98 (April 24 high and former gap low).



Pound – 1.8530
Initial support at 1.8418 (June 15 corrective low) followed by 1.8316 (Jun 13 corrective low). Initial resistance is now at 1.8548 (Jun 15 high) followed by 1.8579 (Jun 8 high).



Aussie – 0.7435
Initial support at 0.7345 (June 14 low) followed by 0.7313 (61.8% retracement of 0.7015 to 0.7795 advance). Initial resistance is now at 0.7505 (June 9 corrective high) followed by 0.7547 (June 5 corrective high).


By Easy-Forex