In non-form payrolls, the market for six successive months observed a reduction. From the past three-months, growth in once exciting service division has distorted close to nil growth.

Technical Commentary

In non-form payrolls, the market for six successive months observed a reduction. From the past three-months, growth in once exciting service division has distorted close to nil growth. c The decrease in actual income will put extra pressure on a previously harassed consumer and set the period for the final surrender.

Finally, you we will see a sequence of revision to current economic data, as well as GDP that may modify recent perception of the economy. We will be expecting that the descending revision will verify that we are in a mild downturn. More outstandingly, we expect that while we get to the last quarter of 2008 we will see another downturn in economic activity. Since 2007 the guess for the economy has been “W” formed downturn. We saw it opening in the late February and early on March of 2008. We are at present at the center of apex and of the “W” and look ahead to to see increase begin to turn down throughout the early segment of Q4’08. The final trend in our twofold plunge scenario ought to take place in the second area of next year.

The sub trend rate of 2.1% growth, that we expect to see in Q2’08, is a role of Washington priming the force and is a vivacious external sector. Once the incentive from the Federal government begins to fade, and the contact of the scorching increase in cost of power and commodities can be assess. On a conjugal and global basis, the last indication of support for the economy, net exports will lose color and the US economy will see its first key downturn since the early 1980’s.

TECHNICAL COMMENTARY

Euro – 1.5895

Primary level at 1.5765 on July 11 follows by 1.5692 July 10. Initial support at this time is situated at 1.5948 July 11 followed by 1.6019 Apr 22.

Yen – 106.65
Primary level at 105.66 July 11 follows by 104.99 Jun 30. Initial support is at 107.3 July 11, followed by 107.76 July 7.

Pound – 1.9840
Primary level at 1.9754 July 11 follows by 1.9673 July 9. Initial support is at 1.99959 July 11, followed by 2.0008 July 1.

Australian Dollar – 0.9670
Primary level at 0.9597 July 11 follows by 0.9546 July 10. Initial support is at 0.9718 July 11 followed by 0.9792 July open + June range* 0.618.

Gold – 964
Primary level is at 942 Jul 11 followed by 926 Jul 10. 988.49 at 967.95 July 11 follow initial support (76.4% retracement of the 1032.50-846.00 decline).