Today, the main focus in the FOREX market will be at the JPY and USD while Asian stocks showed negative performances and the Federal Reserve will hold a policy meeting. Anyway, the country with the biggest economy in the world is although expected to keep interest rates low.
Market review
The JPY climbed versus all 16 major currencies after Asian stocks extended a global slide in equities, which reduced investors risk appetite and spurred demand for the JPY as a safe haven. The EUR/JPY fell for a third day as CIT Group Inc., one of the largest commercial and consumer finance company in the U.S., said its quarterly report will be delayed. This revived concern that the commercial lender needs more time to raise funds. The company commented on July 20th that it plans a comprehensive restructuring of its liabilities. The EUR/JPY fell to 135.09 after it touched a low at 134.89, which was its lowest level since August 3rd. The USD fell also for a third day against the JPY on speculation that the Federal Reserve won’t change the interest rates at its meeting today. Today, the USD/JPY fell around 50 pips today and 2.16 percent this week. It touched its lowest level at 95.34, the lowest one since the end of last week. The USD could get volatile after investors await more details about their asset-purchase program at the end of their two-day meeting in Washington.
GBP/AUD
We have analysed the GBP/AUD on a shortterm view and as you can see, the market is trading around the middle Bollinger band and the upper line on the downward “Andrews’ Pitchfork” channel. The MACD signals a bullish environment. If the pair crosses the middle Bollinger Band and the upper line of the channel, it could make further gains towards the upper Bollinger Band, the next potential resistance is located at 2.0274.
EUR/CHF
The Daily-Chart of the EUR/CHF is showing a resistance around 1.5380 and a support line of 1.50. Since the middle of July, the pair has been trading inside a bullish trend channel. Now, it reached the resistance at 1.5380. If the market doesn’t break the trend channel to the downside, it may continue gains inside the channel towards the potential resistance level around 1.5450.
