GDP Revision Doesn’t Happen — EUR/USD Gains

GDP Revision Doesn’t Happen — EUR/USD Gains

EUR/USD reacted with a small drop immediately after the GDP release today but then retraced and is now trading with a considerable daily gain. The Q2 2009 GDP change value was expected to be negatively revised today but since the revision didn’t happen, traders react on a positive signal for the U.S. (and global) economy. EUR/USD is currently trading near 1.4269.

U.S. real GDP decreased at an annual rate of 1.0% in the second quarter of 2009 according the latest estimate report. Previous estimate report also showed a -1.0% change. Traders expected a revision of the estimate to a drop by 1.5%. The GDP fell by 6.4% in the first quarter of 2009.

Initial jobless claims declined to 570k last week, down from 580k a week before (revised from 576k). A decline to 565k was expected from this report.

EUR/USD Grows Positive Income/Spending Data

EUR/USD Grows Positive Income/Spending Data

EUR/USD rose today at a relatively slow pace after posting its biggest daily gain since August 3 yesterday. The rather good personal income/spending data that came out in U.S. today helped the traders to decide in favor of more risky and yielding assets, including the euro. EUR/USD is now trading near 1.4367.

Personal income in U.S. remained unchanged in July compared to June’s value, while the June’s change was positively revised from -1.3% to -1.1%. Personal spending increased by 0.2% in July after 0.6% gain in June (positively revised from 0.4% gain). According to median forecasts, income should have increased by 0.1% and spending — by 0.2%.

Michigan sentiment index went up to 65.7 in August according to a new revised report. The previous value was 63.2 and the traders expected a rise only to 64.

Forex Technical Analysis for 08/31—09/04 Week

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: hold.
EUR/JPY trend: hold.

Floor Pivot Points
Pair	3rd Sup	2nd Sup	1st Sup	Pivot	1st Res	2nd Res	3rd Res
EUR/USD	1.4007	1.4107	1.4203	1.4304	1.4400	1.4500	1.4597
GBP/USD	1.5714	1.5934	1.6104	1.6323	1.6493	1.6713	1.6883
USD/JPY	91.03	92.13	92.85	93.94	94.66	95.76	96.48
EUR/JPY	129.30	131.11	132.46	134.27	135.62	137.42	138.77

Woodie’s Pivot Points
Pair	2nd Sup	1st Sup	Pivot	1st Res	2nd Res
EUR/USD	1.4106	1.4201	1.4303	1.4398	1.4500
GBP/USD	1.5921	1.6079	1.6311	1.6468	1.6701
USD/JPY	92.03	92.66	93.85	94.47	95.66
EUR/JPY	130.99	132.23	134.15	135.39	137.31

Camarilla Pivot Points
Pair	4th Sup	3rd Sup	2nd Sup	1st Sup	1st Res	2nd Res	3rd Res	4th Res
EUR/USD	1.4192	1.4246	1.4264	1.4282	1.4318	1.4336	1.4354	1.4408
GBP/USD	1.6059	1.6166	1.6202	1.6238	1.6309	1.6345	1.6381	1.6488
USD/JPY	92.57	93.07	93.23	93.40	93.73	93.90	94.06	94.56
EUR/JPY	132.07	132.94	133.23	133.52	134.10	134.39	134.68	135.54

Tom DeMark’s Pivot Points
Pair	EUR/USD	GBP/USD	USD/JPY	EUR/JPY
Resistance	1.4352	1.6603	95.21	136.52
Support	1.4155	1.6214	93.40	133.36

Fibonacci Retracement Levels
Pairs	EUR/USD	GBP/USD	USD/JPY	EUR/JPY
100.0%	1.4404	1.6543	95.04	136.08
61.8%	1.4329	1.6394	94.35	134.87
50.0%	1.4306	1.6348	94.13	134.50
38.2%	1.4282	1.6302	93.92	134.12
23.6%	1.4254	1.6246	93.65	133.66
0.0%	1.4207	1.6154	93.23	132.92

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