| FOREX Daily Outlook by Easy-Forex.com |  |
Dollar continues to ease on rate cut expectations.
CURRENCY TRADING SUMMARY – 25 FEBRUARY 2008 (00:30GMT)
· U.S. Dollar Trading (USD) ended the week lower across the board on growing recession fears. In a quiet end to the week in terms of data the greenback eased as traders added to bets that the Federal Reserve will look to cut rates on the 18th of March by as much as 50 bps. In
· The Euro (EUR) rallied on the back of EURJPY crosses heading to a five week high of 159.58 on Thursday. In what was otherwise a dour session, the EURUSD traded with a low of 1.4786 and a high of 1.4863 before closing the day at 1.4824 in
· The Japanese Yen (JPY) traded at a week high versus the USD on the back of easing equity markets. As a result the JPY ceased eight successive session of decline versus the Euro and traded at its strongest level against the USD since Feb 12. Overall the USDJPY traded with a low of 106.69 and a high of 107.57 before closing the day at 106.92 in the
· The Sterling (GBP) strengthened versus the Euro and Dollar on Friday as robust
· The Australian Dollar (AUD) failed to break key 92 cent levels for much of the Asian session before heading to a week high of 0.9240 in
· The Czech Koruna (CZK) rose to a record against the Euro and posted a fifth weekly gain on speculation the central bank will raise interest rates. Policy makers have raised the rate 1.25 percentage points to 3.75 percent over the past 10 months. “The Czech story is really very positive,” said Nicholas Kennedy, an emerging-market currency strategist at 4Cast Ltd. in London. “Everyone's looking for a reason to pull back but it's not giving them a reason.” It has been the world's best-performing currency against the Euro this year, gaining 6 percent. The Czech currency also advanced to 16.916 per dollar, from 17.168 on Feb. 15. Overall the USDCZK traded with a low of 16.837 and a high of 16.98.
· Gold (XAU) fell from a record, as declining energy and commodity prices eased inflation concerns that had spurred demand for the precious metal as a hedge. Despite easing, XAU ended the week up 4.2% overall, the biggest weekly advance since November 2007. XAU traded with a low of 936.20 and a high of 949.40.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.4611 | 1.4702 | 1.4835 | 1.4863 | 1.4956 |
| USD/JPY | 106.35 | 106.73 | 107.20 | 107.57 | 108.67 |
| GBP/USD | 1.9363 | 1.9611 | 1.9690 | 1.9709 | 1.9738 |
| AUD/USD | 0.9005 | 0.9113 | 0.9235 | 0.9252 | 0.9331 |
| XAU/USD | 896.50 | 906.10 | 944.70 | 954.60 | 970.73 |
· Euro – 1.4835
Initial support at 1.4702 (Feb 21 low) followed by 1.4611 (Feb 18 low). Initial resistance is now located at 1.4863 (Feb 22 low) followed by 1.4956 (Feb 1 high).
· Yen – 107.20
Initial support is located at 106.73 (Feb 22 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 107.57 (Feb 22 high) followed by 108.67 (38.2% retracement of the 114.66 to 104.97 decline)
· Pound – 1.9690
Initial support at 1.9611 (Feb 22 low) followed by 1.9363 (Feb 20 low). Initial resistance is now at 1.9709 (Feb 22 high) followed by 1.9738 (Feb 14 high)
· Australian Dollar – 0.9235
Initial support a 0.9113 (Feb 20 low) followed by 0.9005 (Feb 15 low). Initial resistance is now at 0.9252 (Feb 22 high) followed by 0.9331 (Nov 8, 2007 high)
· Gold – 944.70
Initial support at 906.1 (Feb 19 low) followed by 896.50 (Feb 7 low). Initial resistance is now at 954.60 (Feb 21 high) followed by 970.73 (Bull channel resistance)
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