Chris Lee | forex

It has been a crazy Friday 02-07

Jul 3rd 2010 at 3:02 AM

The Euro (1.2519) has risen sharply and is trading higher above 1.25. The 55-DMA Resistance is at 1.2545 and a strong break above it might trigger further upmove towards 1.2650-2700. Dollar-Yen (88.03) has bounced back from its low of 86.96 and has Resistance at 88.35-50. Euro-Yen Cross (110.15) has risen following the rise in Euro and has significant Resistance at 110.50 which is expected to hold.

The Pound (1.5177) is keeping up its upside momentum and might rise further towards 1.5250. Dollar-Swiss (1.0621) is continuing to trade weak and is now trading just above the 200-DMA (1.0618). If this 200-DMA fails to hold we might see further dip towards 1.0500-0450. Aussie (0.8484) has bounced back from the 200-Week-MA (0.8311).

Todays Friday NFP has been very weak and even though the private sector added 83k jobs it is not sufficient to dent the unemployment rate and analysts say an increase of 250k jobs PER MONTH for at least 3 years is required to lower the unemployment rate to pre-Financial collapse figures. Factory ordera also came in weak. What is troubling is the Manufacturing Jobs Numbers which is rather pathetic..only 9k added for June.

The S&P 500 is already below 200MA and it seems like 1040 will be the resistance. There is hardly any support all the way down and we can be sure S&P 500 will continue to come under pressure in the coming months,although some analysts say a summer rebound is still possible..but only for a short term effect.

The markets are also in a holiday mood for the 4th of July celebrations and markets have been rather quiet and many currencies undergoing range trading.

Final Bell 2nd July 2010

Dow: -50
S&P 500: -4.5

Please to comment
Aug 22nd 2010 at 1:47 PM by bnmarika1214
thank you :)

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