Yesterday low-yielding currencies made the FOREX market volatile after positive commodity and share prices returned confidence and hope for an economic rebound. Nevertheless we hope you will make successfully trades and wish you a nice Wednesday.
Market review
The low-yielding currencies like the USD and the JPY, fell on speculation the global recession is over and the economy is on the way to recover. The NZD and AUD raised the most of the 16 major currencies after rising commodity prices bolstered Asian stocks. The Nikkei 225 climbed 1 percent while the MSCI Asia Pacific Index of regional shares increased 1.5 percent.
The Reuters/Jefferies CRB Index of commodity prices climbed 2.5 percent yesterday, which was the highest level since November 11th and as for the Crude oil, it climbed as high as $70.94 a barrel today, the highest since November 4th. After all the positive movements in commodities and shares, the USD fell against the EUR and fell again under the level of 1.40. The pair climbed 165 pips yesterday and reached a high at 1.41. As we said, the NZD and AUD gained also against the USD. The NZD/USD reached a high of 0.6307 today after rising 1.45 percent since yesterday while the AUD gained over 150 pips against the USD after it hit a high at 0.805. Actually the weak USD fell also against the JPY. It slid 1.3 percent, recovering from the gains on Friday. But the pair picked back up a little, after rising back to 97.63 today.
USD/JPY
As you can see the USD/JPY has established two important psychological and technical support lines at 96.00 and 94.00 during 2009. Currently the market is trading in a downward trend channel. If the market doesn’t leave the channel with a break through the upper line, it may continue its downward phase towards the support lines.
NZD/JPY
The NZD/JPY has been moving along the Fibonacci retracement lines in a bullish trend. As you can see the market is touching the important support line at 60.00 and the lower line of the bullish trend channel. If it does not break these two lines, it may go on inside the channel towards the 100% (63.43) and the 123.6% (67.96) Fibonacci lines.
