Good morning from wonderful Hamburg. We have reached the end of the week and the end of the month again. This week the FOREX market has been very volatile. We hope you made successful trades and wish you a nice weekend.
Market review
The USD headed for its biggest weekly decline in almost three years against the EUR on speculation policy steps to spur growth and lending will reduce demand for the relative safety of U.S. assets. The USD was also on course for its fourth weekly loss against the JPY as the Fed committed $800 billion to end a seizure in credit markets while the European Union proposed a 200 billion EUR ($258 billion) stimulus package. The USD has dropped against all 16 mostactively traded currencies since November 21st. The EUR/USD is trading currently near 1.29 while the USD/JPY is still over the 95.00 level with an actual rate of 95.33. The EUR/JPY has gained 1.8 % this week and is now trading around 123.20.
The CAD headed for its best performance in four weeks as the USD fell versus most major currencies and equities advanced today. The CAD/USD is little changed at 1.2337 from a dayclose of 1.2317 yesterday.
The AUD as like as the NZD were set for weekly gains as improved risk appetite boosted higheryielding assets. “We have seen an end to the panicked repatriation flows that have buoyed the USD,” a trader said. The AUD rose 3.7 % to 65.57 from a low of 63.25 on November 21st against the USD while the NZD climbed 2.6 % to 55.11.
AUD/CHF
The AUD/CHF seems to be on the way to the 0.81 resistance level again. As you can see the market has broken the bearish trend line and the middle Bollinger band. Interesting is that the upper Bollinger band is accurately on the resistance line which could be a sign for a return, after the market has torched both levels.
EUR/AUD
Since the beginning of September the EUR/AUD has been trading in Fibonacci retracement lines. The market seems to become faint to touch the 100% retracement level. If the market breaks through the 61.8% support line it could continue the bearish way in the trend channel towards the 23.6% retracement support line.
