Midday Technical Analysis for Tuesday August 1 2006

Full report with charts on Forexalt.com

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Midday Technical Analysis: The Dollar has a little Strengthened

The dollar has a little strengthened the positions in relation to the major currencies. On the eve the important levels of resistance and technical correction before the publication of the major economic data have been achieved is represented by natural enough event.
On the USA the output of a package rather considerably the data is expected. Most interesting of them will be parameters of personal incomes and spending, and also PCE Core Chain Wt Price Index. It is expected, that PCE Core, and also personal incomes will grow. However it is improbable, that forecast parameters have forced the market to reconsider a position concerning decision FRS, therefore positive influence on dollar will be short-term. And here negative influence in a case of weaker, than predict the data, can be more significant.
Also there will be data on an ISM index in July. Analytics predict decrease in this index; however after an output of the good data under the Durable goods orders, use of capacities and the regional indexes, many expect a parameter in area 54.5-55. Such value can support a dollar exchange rate a little.

EUR
Weekly chart EUR trend – Range
Resistances
1.2771/78 (high 07.28.2006 at 1.2771 and 61.8% retracement of 1.3483 to 1.1640 at 1.2778 and 61.8% retracement of 1.2978 to 1.2459 at 1.2778), 1.2860 (high 07.07.2006), 1.2971/78 (highs 05.15.2006 and 06.05.2006)
Supports
1.2705/06 (23.6% retracement from 1.1825 to 1.2978 at 1.2705 and 61.8% retracement from 1.2860 to 1.2459 at 1.2706), 1.2660/57 (50.0% retracement of 1.2860 to 1.2459 at 1.2660 and 38.2% retracement of 1.2978 to 1.2459 at 1.2657), 1.2560/55 (50.0% retracement of 1.3483 to 1.1640 at 1.2560 and 23.6% retracement of 1.2860 to 1.2459 at 1.2555)

GBP
Weekly chart GBP trend - Range
Resistances
1.8672/87 (Thursday high 07.27.2006 at 1.8672 and Monday’s high 07.31.2006 at1.8687), 1.8877 (high 06.05.2006), 1.8960/1.9023 (76.4% retracement of 1.9554 to 1.7047 at 1.8960 and high 05.17.2006 at 1.9023)
Supports
1.8595/1.8605 (61.8% retracement of 1.9554 to 1.7047 at 1.8595 and 23.6% retracement of 1.7229 to 1.9023 at 1.8605), 1.8515 (the bottom line of the “yellow” channel), 1.8450 (the bottom line of the “lime-green” channel)

CHF
Weekly chart CHF trend - Bullish
Resistances
1.2439/23 (61.8% retracement of 1.1287 to 1.4281 at 1.2439 and the 38.2% retracement from 1.3237 to 1.1920 at 1.2423), 1.2545 (high 07.25.2006), 1.2585/93 (50.0% retracement from 1.3237 to 1.1920 at 1.2585 and Wednesday high 07.19.2006 at 1.2593)
Supports
1.2285/83 (50.0% retracement from 1.1287 to 1.3284 at 1.2285 and 76.4% retracement from 1.2185 to 1.2593 at 1.2283), 1.2185/78(low 07.07.2006 and 61.8% retracement of 1.1920 to 1.2593 at 1.2178), 1.2015 (low 06.05.2006)

JPY
Weekly chart JPY trend – Capped?
Resistances
115.40 (61.8% retracement from 119.37 to 108.96), 115.77/81 (23.6% retracement from 108.96 to 117.86 at 115.77 and low 07.21.2006 at 115.81), 116.70/90 (resistance line from high 12.04.2005 to 04.11.2006 at 116.70 and 76.4% retracement of 119.37 to 108.96 at 116.90)
Supports
114.19 (50.0% retracement from 119.37 to 108.96), 113.44/43 (low 07.10.2006 and 50% retracement of 108.96 to 117.86 at 113.43), 112.95 (38.2% retracement from 119.37 to 108.96)