FOREX TRADING

Majors Trading In Ranges During Session

Overall, the major currency pairs saw some dollar weakness going into the Asian session. The euro decline the most by dropping 24 pips, while the Aussie declined 19 pips. The cad, swissy, and yen weakened by around ten pips while the pound was still trapped by the major moving averages and managed to move just 3 pips.

The euro (Eur/Usd 1.4918) tried to stay above the neutral swing point at 1.4935 at the beginning of the Asian session but was ultimately rejected. The pair found resistance at the 1.4950 level early in the Asian session and found a slight level of support at 1.4920. Should the pair continued to weaken the S1 level at 1.4875 could provide further support while resistance stands at the 1.5000 level.

The pound (Gbp/Usd 1.6366) is currently being confined by the neutral swing point at 1.6395 and the 100 day moving average at 1.6350. The pair has had a hard time shaking the 100 day moving average at 1.6350 and the 50 day moving average at 1.6266 for the past four days. The pair has resistance at the 1.6490 level while the 1.6240 level will act as support.

The aussie (Aud/Usd 0.9218) The Aussie has been oscillating around the neutral swing point at 0.9235 during the Asian session. The pair declined near the end of the US session finding support at the 0.9180 level. Since the US session closed, the pair has risen over sixty pips to the neutral swing point. The pair is in a strong uptrend and will see resistance at the 0.9310 area.

The cad (Usd/Cad 1.0498) The cad had an increase in volume as the pair shot up over 200 pips on the day. After such a move, the pair is confined to a fifty pip channel between the 1.0475 level and the 1.0525 level. The pair will encounter more resistance at the 1.0578 level which houses the twenty day moving average, and just above that is the R1 level.

The swissy (Usd/Chf 1.0130) The Swissy found a level of support at the 1.0114 level going into the Asian session and since then the pair is risen nearly 15 pips. The pair has been trading in a tight range around the neutral swing point at 1.0125. Strong support was seen throughout the day at the 1.0090 level while resistance is easily seen at the 1.0170 area.

The yen (Usd/Jpy 90.77) has managed to use the neutral swing point at 90.60 as a springboard to further weakening. The pair is coming upon the high of the previous day at 91.07 which is near the R1 swing level. The pair will also encounter slight resistance at the 91.31 area while support is found at 90.10 which is just above the twenty day moving average.

Asian Shares Declining During Session

Equity Futures: Dow -11.00. S&P -1.20. NASDAQ -2.25. Japanese Nikkei +100.00. German Dax -4.00

Stock markets in Asia were declining at the start of trading after a report from the U.S. has shown that housing starts are beginning to slip. The Japanese Nikkei was off 11 points while the Australian S&P/ASX declined 13 points. Japans third largest automobile manufacturer Nissan Motor Co has dropped 1.34 percent. Meanwhile, electronics maker Sanyo gained 2.4 percent and Japan Airlines has jumped 5.08 percent.

The MSCI Asia Pacific Index has jumped by 0.81 points or 0.67 percent during the session.

Overnight, the Japanese Nikkei declined 11.08 points (-0.11%) to 10,325.76. The Australian S&P/Asx was lost 13.30 points (-0.27%) to 4,832.90.

Crude oil for November delivery was recently trading at $78.63 per barrel, lower by $0.51.

Gold for November delivery was recently trading lower by $4.60 to $1,054.00.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved.

RISK DISCLAIMER: These analyses are for information purposes only. They DO NOT post a BUY or SELL recommendation for any of the financial instruments herein analyzed. The information is obtained from generally accessible data sources. The forecasts made are based on fundamental and technical analysis.