FOREX TRADING

Majors Running On Sentiment

Overall, the major pairs were testing immediate support and resistance areas during the overnight session. Some volume entered the market as the dollar began to weaken. There were no major news reports released during the session so the pairs are currently running on sentiment until the European session begins.

The euro (Eur/Usd 1.4857) is currently testing the 20 day moving average as resistance after falling below during the last half of the US session. Just above the moving average is the neutral swing point at 1.4892 which will add to the resistance.

The pound (Gbp/Usd 1.6579) has remained within a tight range during the overnight session, following along from the previous 24 hours. The pair is using the neutral swing point at 1.6573 as support with immediate resistance at 1.6640.

The aussie (Aud/Usd 0.9249) began to strengthen early in the Asian session after finding support at 0.9210 which is just above the 20 day moving average. The pair has moved up the level of resistance a tad to the 0.9370 area.

The cad (Usd/Cad 1.0558) attempted to take on the 20 day moving average late in the US session but ran out of steam. The pair has found minor support at 1.0535 which is slightly above the neutral swing point.

The swissy (Usd/Chf 1.0169) is finding support in the vicinity of the 20 day moving average at 1.0153 after managing to break above it during the late US session. The next major resistance level will be seen at 1.0250 which is where the 50 day moving average is located.

The yen (Usd/Jpy 90.27) tested the 20 and 50 day moving averages which have converged near the 90.60 area to act as resistance. The yen is looking for support near the 90.20 area during the overnight session

Asian Markets Decline Following Oil and Gold

Equity Futures: Dow -10.00. S&P -1.50. NASDAQ -2.25. Japanese Nikkei -40.00. German Dax -13.00

Markets throughout Asian were declining in Friday trade. The Japanese Nikkei declined 60 points and the Australian S&P/ASX has dropped 54 points or just over 1.1 percent. This is the second day in a row that the markets were declining. Most stocks on the Nikkei 225 were losing value during the session. Exporters were helping the index out while electronics makers, as well as the declines in commodities such as gold and oil have led the declines.

The MSCI Asia Pacific Index has dropped 0.97 points or 0.81 percent during the session.

Overnight, the Japanese Nikkei has declined 60.45 points (0.62%) to 9,744.04. The Australian S&P/Asx was declining 54.00 points (1.14%) to 4,693.90.

Crude oil was recently trading at $76.29 per barrel, lower by $0.65. The commodity fell below the 20 day moving average to find support near the 76.50 level.

Gold was recently surging lower by $5.10 to $1,101.50. The precious metal has found support at the 1100 level and is trading near that level during the overnight session.

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