Good morning and welcome from Hamburg. After positive signals for a rebound from the economic recession, the low-yielding USD fell against the most traded currencies. Anyways, have a great day and a nice start in the new week.
Market review
The USD reached its lowest level against the EUR since June 3rd, after investors shifted assets toward higher-yielding currencies like the EUR before a report is expected to show that U.S. manufacturing improved to the highest level in almost a year. The USD-Index fell close to its lowest level this year before the Institute for Supply Management’s factory report for last month. Former Federal Reserve Chairman Alan Greenspan said that the most severe recession in at least five decades may be ending. Yesterday, the USD fell over 80 pips against the JPY after touching a low at 94.50. The EUR/USD rose to a high at 1.4309, which was its highest level since June 3rd. It recovered a bit and trades currently around 1.4240. The USD-Index, which the ICE uses to track the USD against the most traded currencies, was at 78.357 from 78.347 on July 31st. It earlier reached 78.049, which was the lowest level since December 18th.
The AUD rose for a third day against the JPY, after the MSCI Asia Pacific Index of regional shares rose 1 %, which also poised for a third-straight advance. The AUD/JPY rose to 79.27 after touching a high at 79.47.
AUD/JPY
Since May, the AUD/JPY has been moving inside a horizontal trend channel. After touching the resistance line around 80.00, the market pulled back and entered the bullish Fibonacci fan, which starts from the beginning of February. The market is now trading on the upper Fibonacci fan and also close to the resistance at 80.00. If it breaks both lines it may perform further gains.
XAU/USD
Since May, the Gold price has been trading inside Fibonacci retracement lines against the USD. It seems to show a clear resistance around the 38.2% (958.31) level. If the market breaks through this level, it may recover towards the next possible Fibonacci resistance lines at 23.6% (970.50) and 0.0% (990.20).
