Weakness In Oil Prices | ForexGen Newsletter

Renewed weakness in oil prices and a break of 1.4850

News and Events:

The Dollar rallied to an almost six-month high against the Euro on Thursday amid growing concern over euro zone economic weakness and accelerating inflation in the United States.

Traders sold the Euro after reports showed contraction in the Euro zone's economy in the second quarter. The Euro zone single currency accelerated its losses and fell below 1.4800 after it broke through key technical levels, analysts said. Government data showed US consumer prices rose at twice the rate expected in July. Analysts said higher prices in the short term may help boost the case for interest rate hikes by the Federal Reserve, although they warned that over time, inflation would hurt the economy.

Oil prices are down more than $30 from a record high 145.45 hit in
July. Crude oil settled 1.26% lower on Thursday at $114.93 a barrel.

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ECB And BOE

ECB and BOE are both expected to leave rates steady

News and Events:

The Dollar rose for a fourth straight day overall to a seven-month peak versus the Yen and a six week high against the Euro on Wednesday, as the slide in oil prices to a new three month low raised hopes economic growth would pick up and inflation would subside.

Earlier this week, Fed kept short term interest rates unchanged but was perceived as being slightly more concerned about slow economic growth than it was about inflation

Demand for the Euro fell ahead of the European Central Bank policy meeting today. While the bank is expected to leave benchmark borrowing costs steady at 4.25%, analysts think ECB President Jean-Claude Trichet could soften his hawkish rhetoric, citing more data pointing to slower euro-zone growth.

Bank of England is also expected to leave rate unchanged at 5%, the lowest since December 2006.

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ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

ForexGen principals:

ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

The Forex Markets Today

The Markets Today Thursday 07 August 2008 / 10:15h CET

EUR/USD	1.5470
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Down to 1.5400 folowed by a 60-pip pullback. Bearish trend now at 1.5510, while underneath the Euro should continue to soften. We lower our target to 1.5290		A daily close above 1.5510 ends the bearish move and risks to see the pair hold in a range of 1.5450/1.5750 a while longer.	1.5450 MINOR 1.5475 MINOR 1.5425 STRONG 1.5510 TREND 1.5350 TARGET 1.5540 STRONG

GBP/USD	1.9500
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
A new low of 1.9460, this is a strong support and we risk to reverse up to 1.9565 before resuming the down-trend.		A break through 1.9460 has room for 1.9330. On top a daily close above 1.9565 can see a larger pull-back to above 1.97	1.9495 MINOR 1.9510 MINOR 1.9460 STRONG 1.9565 STRONG 1.9330 TARGET 1.9620 STRONG

USD/JPY	109.30
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Top of 109.75 means target achieved. Minor bullish trend at 109.35, a break there risks a fall back to strong 108.30		The market may want to see the 110 handle trade and keep the pair in high range all day.	109.35 MINOR 109.80 STRONG 108.90 STRONG 110.05 MINOR 108.30 KEY 110.30 STRONG

USD/CHF	1.0555
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
1.0620 high and back to the rising support at 1.0550. While this holds we can attempt 1.06 again, target remains 1.0660		A break of 1.0550 on the 4-H chart risks a dip to 1.0485 key, a lower daily close stops the bullish view.	1.0550 MINOR 1.0585 MINOR 1.0485 KEY 1.0620 MINOR 1.0445 STRONG 1.0660 TARGET

XAU/USD	883.00
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Expect Gold to remain range-bound 872 / 888, bias is to widen the downside towards 865 or even 850		A daily close above 888 could see Gold try the 905 key resistance tomorrow.	880 MINOR 888 STRONG 872 STRONG 894 MINOR 865 STRONG 906 KEY

Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

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ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

The Forex Markets Today

The Markets Today Wednesday 06 August 2008 / 09:50h CET

EUR/USD	1.5500
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Down to 1.5440 and back. Medium-term bearish trend-line at 1.5545 this morning, sell any spikes, continue to target 1.5350 this week.		The Euro may not spike and simply fall back to 1.5470 with space to fall further. A daily close above 1.5550 stops the immediate bearish view.	1.5470 MINOR 1.5515 MINOR 1.5435 STRONG 1.5545 TREND 1.5350 TARGET 1.5610 STRONG

GBP/USD	1.9560
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
The downside was widened to 1.9510, since any recovery has been short-lived and pressure is still on the downside. Looking to extend the current fall to 1.9430 or even further		Strong initial resistance 1.9600. Intra-day allow for spikes to 1.9630 to sell again, a daily close higher risks 1.9800	1.9515 MINOR 1.9600 STRONG 1.9460 STRONG 1.9630 STRONG 1.9430 TARGET 1.9720 STRONG

USD/JPY	108.30
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
It has made a new high overnight and for now remains above old 108.25 high. Stay long, expect a rise to 109.50-ish.		Stop longs upon breaking 108.15, stronger support 107.80, a daily close lower risks a correction.	108.20 MINOR 108.50 MINOR 107.80 STRONG 108.85 MINOR 107.50 MINOR 109.30 TARGET

USD/CHF	1.0515
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Very short-term bullish trend broke this morning, the pair may see a set-back to as low as 1.0445, buy dips.		A return back above 1.0530 turns us bullish, medium-term target remains 1.0660	1.0495 MINOR 1.0535 MINOR 1.0445 KEY 1.0590 MINOR 1.0395 STRONG 1.0660 TARGET

XAU/USD	884.00
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Gold fell as low as 872 before starting to turn. Currently on a minor upswing it may try the 888 level and could even reach 895. SELL rallies		A new dip underneath of 880 has space for at least 865 or even 850	880 STRONG 888 MINOR 873 MINOR 895 STRONG 865 STRONG 903 STRONG

Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

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ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

FOMC Expected Rates

FOMC Kept Rate Steady At 2% As Expected

News and Events:

The Dollar climbed to seven-week peaks against the Euro and major currencies on Tuesday, as oil prices plunged and the Federal Reserve maintained its focus on slowing persistent US inflation pressure in the economy.

Analysts said Tuesday's Fed statement was more balanced than what the market had expected, as it expressed concern about both economic growth and inflation. Another comment showed the Fed statement does not point to one clear rate path.

The drop to a three-month trough of $118 per barrel helped ease fears that high energy prices will continue to weigh on the US economy at a time consumer prices are showing an unexpectedly fast rise.

AudUsd was among the weakest performers on Tuesday, falling to a four-month low at 0.9133.

Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

ForexGen principals:

ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

The Forex Markets Today

The Markets Today Monday 04 August 2008 / 09:40h CET

EUR/USD	1.5585
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Fridays fall was stopped at 1.5505 and the Euro bounced back to the starting point. Strong bearish trend at 1.5610, SELL here, we continue to wait for a fall targeting 1.5350		A close above 1.5625 on the 4-H charts stops the immediate bearish view and further range 1.5550 - 1.5750 may be seen this week.	1.5570 MINOR 1.5610 TREND 1.5525 STRONG 1.5625 KEY 1.5460 STRONG 1.5700 STRONG

GBP/USD	1.9705
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Cable is weakening and trades at the lowest level in 3 weeks. Minor support 1.9700, stronger at 1.9660 may hold and Cable risks a pullback towards 1.98		A fall through 1.9660 as space for a larger fall to as low as 1.9440.	1.9700 MINOR 1.9735 MINOR 1.9660 STRONG 1.9800 STRONG 1.9570 STRONG 1.9880 KEY

USD/JPY	107.80
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Expect to hold range 107.30 / 107.90 with bias to break the top. Medium-term target remains 110.		An hourly break at 107.25 risks trying the 106.65 key support.	107.25 STRONG 107.90 MINOR 106.65 KEY 108.20 STRONG 105.90 STRONG 108.90 MINOR

USD/CHF	1.0470
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
While above 1.0445 we remain bullish – target remains 1.0660		1.0445 intra-day key support broken risks a set-back to 1.0385, a daily close lower stops the rise.	1.0445 STRONG 1.0500 MINOR 1.0390 TREND 1.0540 MINOR 1.0350 MINOR 1.0660 TARGET

XAU/USD	914.00
EXPECTATION		THE RISK	SUPPORT AND RESISTANCE
Bearish trend stands at 918 this morning – SELL here and look to widen the downside towards 880.		An hourly close above 918 stops the short-term bearish view and Gold could maintain a range 910 -935	911 MINOR 918 TREND 895 STRONG 923 MINOR 882 TARGET 930 STRONG

Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

ForexGen principals:

ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.