forex analysis 07-07-08

The U.S. dollar reached its lowest value against the European currency in more than two months today as the traders are waiting ADP report on the June jobs dynamics and expect it to show a first decline in four months.

Automatic Data Processing, Inc. reports on the employment in the non-farm private business sector each month, relying on the private data of its business clients. June report will be released today at 12:15 GMT and the median analysts’ forecast is a decline by 20k after 40k gain in May.

The dollar also declined against the Australian currency today as the macroeconomic statistics there pushed the AUD rate higher against almost all other currencies. Despite loses against euro, Australian and New Zealand dollars, USD managed to grow against the Great Britain pound today as the Bank of England will probably abstain from increasing the rates and may even cut the interest rate during its next meeting on July 10.

Although the dollar is trading quite low this week and is experiencing a downside daily trend against euro since June 16, in a longer term period the EUR/USD pair is still going sideways. The approach of the period’s maximum levels may trigger the sell-out on the pair by the range speculators.

EUR/USD went up today from 1.5793 to 1.5813 as of 8:26 GMT with a maximum at 1.5849 (the highest level since April 24). GBP/USD dropped 1.9953 to 1.9894, while AUD/USD rose from 0.9551 to 0.9608.

forex target target close target close profit
sell buy sell buy target sell


EUR/USD 1.566 1.576 10 pips
USD/JPY 10719 - 10729 - 10 pips
GBP/USD 19739 119749 10 pips
USD/CHF 10276 - 10286 - 10 pips
USD/CAD 10175 10185 13 pips
AUD /USD - 9535 - 9520 15 pips
NZD/USD 7530 - 7540 - 10 pips
EUR/JPY 16823 16833 10 pips
EUR/GBP 7950 - 7965 - 15 pips
EUR/CHF 16131 - 16141 - 10 pips
GBP/JPY - - - - -