Market review
The USD dipped versus the EUR on expectations President Barack Obama will announce further support to the U.S. auto industry, bringing investors to look for higher-yielding assets. The EUR/USD rose to 1.3574 from an opening of 1.3539.
The JPY rose against the USD, recovering from its first quarterly loss since June, on speculation that domestic companies are importing funds which earned overseas, are back to the country before the end of the financial year next week. The AUD and NZD touched a fourth weekly gain against the USD after stocks extended a worldwide rally and prices increased for the commodities which the two nation export. The Dollar-Index fell for a third week as Obama commented that he will outline his strategy for the Auto industry “in the next few days” and suggested that he is open to provide automakers more aid. The Dollar-Index, which the ICE uses to track the U.S. currency versus the 6 major currencies of the EUR, JPY, GBP, CAD, CHF and SEK, decreased 0.4% to 83.853. The USD/JPY fell to 98.00 from 98.44 after it touched a high at 98.88 and a low at 97.87. The AUD/USD rose 2.7% this week, after it touched a high at 0.5802. The NZD/USD also increased to a weekly high of 0.7095 and is trading currently around 0.6986.
GBP/USD
As a middle-term view the USD has performed losses against the GBP since the end of September. The bearish phase has been established inside a falling trend channel and a downward Fibonacci fan. In March the market entered finally the Fibonacci fan and touched the middle line, after it crossed the upper line of the channel. If the market enters the trend channel again, it could fall towards the lower line of the Fibonacci fan.
AUD/USD
The AUD/USD seems to be overbought, after the massive losses in the USD the market crossed over the upper Bollinger band and touched the 0.71 resistance line. There is one more resistance level at 0.7270, but according to the Bollinger bands the market could fall towards the middle and lower band.
