Good morning and welcome. We got a clear sky with a wonderful sunrise here in Hamburg. The cold and rainy day’s seems to be over for the next days. However, we wish you a nice and sunny Tuesday and good luck in trading.
Market review
The EUR approached a seven-week high against the USD on speculation ECB officials will signal today that they could keep interest rates unchanged at their meeting on June 4th, holding demand of assets in the Euro-Zone. The EUR/USD climbed back to 1.3600 after opening the day around 1.3580 and touching a low at 1.3564.
Yesterday the JPY gained for a third day against the USD as General Motors Corp. said the bankruptcy is more probable than previously expected and that the biggest U.S. automaker will need to file for bankruptcy court protection. “The company is evaluating the possibility of bankruptcy on a country by country basis,” GM Chief Executive Officer Fritz Henderson said. However, the USD fell for a third day against the JPY and touched a low at 97.14. It fell over 180 pips during the past three trading days.
The USD-Index, which tracks the USD against the EUR, JPY, GBP, CHF, CAD and the SEK, fell to 71.678 from 82.964 yesterday. Demand for the USD could increase after FED Chairman Ben Bernanke said he was “certain” that the USD would stay as the world’s main reserve currency.
NZD/JPY
Yesterday, the NZD/JPY broke through the lower line of the upward trend channel. As you can see the MACD analysis also signalizes an overbought market. That could be a sign for a recovery phase. If the market additionally will cross the support line at 58.00, we could be able to expect further losses.
AUD/USD
Since the 28th of April, the AUD/USD has been moving in an upward trend phase. It’s the second time that the pair is touching the simple moving average. But this time we are additionally able to see how it is pending over the Pivot P(W) at 0.7565. If the pair breaks through the simple MA and the Pivot Point, it may fall towards the next Pivot S1(W) at 0.7421.
