As many investors and economists expected, the global financial crises seems to take an end. Stocks and economic data around the world show better performances and investors are getting appetite to invest in more risky assets. Anyways, have a nice trading day.
Market review
This week, the USD decreased to its lowest level this year before U.S. reports that economists said which could show companies eliminated fewer jobs, which reduces demand for safer currencies like the USD or JPY. The USD-Index fell close to a 10-month low before payroll data by ADP Employer Services, which is the first of three U.S. job reports scheduled for release in the next three days. The strong EUR did not only increase against the USD. It also rose near to a seven-week peak against the JPY on speculation a European report may show that retail sales climbed in June, which adds signs the recession in the Euro-Zone may be abating. Also the GBP gained against the USD and it may rise for a fifth day as the U.K.’s Office of National Statistics is likely to say today that manufacturing output fell 0.1 % from May, after a 0.5 % contraction in April, a survey showed. The EUR/USD may recover to the downside after the past two day-candles are showing a doji, which signalizes a trend reversal. The most traded currency pair is trading currently around 1.4400. The EUR/JPY pulled a bit back from record gains and trades right now around 136.80.
EUR/JPY
Since the middle of July, the EUR/JPY has been moving along a bullish trend line. After it touched the upward line for the fourth time, it pulled back and tested the 136.00 support level. Currently the market is trading between both lines and the MA Oscillator is still signalizing a bullish market. But if the market breaks the support of 136.00, we may be able to see a recovery to the downside.
EUR/USD
During the past days, the weak USD has lost against the EUR. It caused a big spike between the Bollinger bands. The market crossed the first weekly Pivot (Pivot R1) but pulled back a little from the upper Bollinger band. If the market pulls back under the Pivot R1 at 1.4372, it could fall towards the middle Bollinger band and the Pivot P at 1.4190.
