Market review
The EUR fell against a basket of major currencies as a report showed that Banque AIG, a unit of AIG’s Financial Products division, may face defaults on $234 billion of derivatives after two executives stepped down in Paris. The EUR/AUD fell to 1.94 from 1.9453 after it touched a low at 1.9367. The USD fell against the EUR and the NZD. The EUR/USD reached a high at 1.3619 from 1.3567 and the NZD/USD rose over 1.5%.
The JPY fell on expectations that Japanese reports will show retail sales and business sentiments are deteriorating, which would reduce demand for the nation’s currency as a safe haven from the world wide financial crises. The JPY fell for a second day against the EUR after Asian stocks extended a global rally that spurred investors to seek higher-yielding assets. The AUD and NZD rose against the JPY as the MSCI Asia Pacific Index rose to a two-month high. The JPY fell to 132.70 from 132.48 versus the EUR. On March 24th it touched the 134.51 level, which was the lowest level since October 21st. The AUD/JPY rose to a high of 68.60 from 68.07 after losses from the previews day. Similarly the CAD/JPY, it reached a high around 79.60 from 79.32 and touched a low of 78.68.
CAD/JPY
Since the middle of January the CAD/JPY has been trading in an upward trend phase. Now the Market has reached the two resistance lines at 79.00 from November and the 80.50 from the beginning of January. It seems to oscillation between these two resistance lines. If the Currency pair crosses the 80.50 resistance line, there might be further gains towards the 87.00.
NZD/USD
From December 2008 to the middle of March, the NZD traded inside a bearish Fibonacci fan. As the market crossed the upper line of the fan, it performed further gains and reached the highest level since the beginning of October of 0.58. If the market breaks through the 0.58 resistance line, it could rise further and reach the 0.60 resistance level of December and January.
