The Euro was set for a volatile day as traders digested the speculated EU rescue plan leaked over the weekend
City Index September 26, 2011 2:00 PM
<p>EUR/USD Range: 1.3361 – 1.3549 Support: 1.3400 Resistance: 1.3500 The euro/dollar pair hit a new 8 month low this morning of $1.3361 as traders […]</p>
The Aussie Dollar’s fall from grace continued on Monday, with the pair’s rate hitting a new 10 month low of 0.9611. Support could be found at the 50% retracement from the years low/high at 0.9571. The eurozone crisis and subsequent dollar demand is taking the lead in defining risk appetite and near term direction of the pair’s rate, a factor likely to continue for the rest of the week. Today we have US New Home Sales data out this afternoon (UK time) with sales expected to fall marginally to 0.295m units from a previous sales figure of 0.298m.
Golds spectacular fall from grace continued on Monday, with the precious metal price falling to a new 2 and a half month low of $1534.49. The perikious state of Gold prices in the last week has been triggered by dollar strength, which makes the price of Gold more expensive for non dollar holders, and the sharp equity falls, which has forced funds to liquidate dollar positions to cover margin calls on other asset classes as they fall sharply. Short term outlook for Gold is starting to look more bearish with prices rapidly falling below key technical support levels but nonetheless, Gold is likely to remain very volatile this week.