Daily Forex Fundamentals – July 19, 2011

What’s on the Economic Horizon

U.S. Housing and Building Data on Tap

German ZEW Consumer Sentiment Survey to Fall to -11.8 from -9.0
Bank of Canada Widely Expected to Keep Rates at 1.00%

U.S. Dollar (USD)

Congratulations Mr. Greenback! It looks like you’re off to a wonderful start this week! Thanks to risk aversion on European debt woes, risk sentiment turned sour yesterday, consequently helping the Greenback rally across the board. The U.S. dollar index, which measures the strength of the Greenback versus a basket of other major currencies, surged higher to close the U.S. trading session at 75.57. Read more…

Euro (EUR)

Contrary to Jessie J’s hit Price Tag, traders still think it’s all about the money for the euro region. The euro fell early in the day, but recovered in the later sessions, with EUR/CHF closing 121 pips higher at 1.1543 and EUR/USD forming a dragonfly doji at 1.4112. Read more…

British Pound (GBP)

The British pound got a heavy pounding yesterday despite the lack of economic data from the U.K. GBP/USD slid below the 1.6100 handle and closed at 1.6057 while GBP/JPY ended the day 5 pips below the 127.00 mark. What does today’s set of data bring for the pound? Read more…

Japanese Yen (JPY)

Consolidation, consolidation, consolidation! The dullest currency pair turned out to be none other than USD/JPY. The pair barely moved and simply traded within an extremely tight 25-pip range all day as Japanese banks were out on holiday. Read more…

Canadian Dollar (CAD)

It was a good day for the comdoll bears yesterday when risk aversion drove the high-yielding currencies lower against the Greenback. USD/CAD went up to as high as .9637 in the U.S. session before it finished the day 51 pips higher than its open price at .9589. Read more…

Australian Dollar (AUD)

The Aussie started the week on a very weak note yesterday, no thanks to risk aversion. AUD/USD fell as low as 1.0560 before recuperating its losses slightly to end the U.S. trading session at 1.0597. All in all, pair was down a good 43 pips. Read more…

New Zealand Dollar (NZD)

NZD/USD moved sideways yesterday thanks to the lack of economic data from New Zealand. The pair found resistance around the .8466 week open price and support near .8420. Could the Kiwi have a chance to bust out of its range today? Read more…

Swiss Franc (CHF)

USD/CHF may have gapped down over the weekend but the U.S. dollar was quick to outpace the Swissy yesterday. The pair opened at .8091, climbed to a high of .8195, before closing at .8177. Meanwhile, EUR/CHF also closed its weekend gap as it landed back above 1.1500. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!