On Friday we were able to experience a volatile market in the USD crosses. After some news the FOREX market reacted very abrasively. However we hope you had a great weekend and wish you a nice start in the new trading week.
Market review
On Friday the strong USD rose against a basket of currencies after a report showed unemployment rate fell more than expected. The Unemployment rate in May fell 0.5% to 8.9% after the market expected a fall of just 0.2%. The market seems to get more confidence and risk appetite after the date showed the U.S. recession is abating, which boosts demand for the nation’s assets. There are expectations that the Federal Reserve may increase the interest rates this year. The USD/JPY climbed more than 200 pips on Friday and touched its peak at 98.89, which was the highest level since Mai 08th. The EUR/USD fell over 1.5% after it touched a low at 1.3933, its lowest level since the end of May.
The AUD rose versus all of the 16 most-traded currencies on expectation that Japanese investors may shift more funds into the South Pacific nation’s securities. They expect that advancing regional stocks may increase their appetite for risk. The AUD/JPY touched on Friday a high at 79.29 and it is rising for the third day currently. It rose also against the GBP, crossing again the psychologically rate of 2.00. The pair touched a low at 1.9878 on Friday and it is currently trading around 1.9970.
EUR/USD
Since the middle of August the EUR has gained against the USD inside an upward trend channel. It rose with a break through the strong resistance line of 1.3740. However, the market is touching now the lower line of the channel for the third time. If it breaks through the line, it could fall and reach the support line at 1.3740. If not, it may climb further towards the next resistance lines at 1.4360 and 1.4720.
GBP/JPY
Also the GBP/JPY is trading in a bullish phase. As you can see, the market has broken the 1.50 resistance level and has reached the level at 157. The pair seems to be overbought after it has touched the bullish trend line and shows a down curve from the upper Bollinger band. It may fall down towards the 1.50 support and the middle Bollinger band.
