Good morning from beautiful Hamburg and welcome. The strong EUR climbed before reports inside the U.S. and the Euro-Zone are released. Economists expect positive data in Europe, which could make the EUR stronger. However, we wish you a successful trading day.
Market review
The EUR climbed against 12 of the 16 most traded currencies before a European report may show that the contraction in the 16-nation region slowed last quarter, economists say. This would add to signs that the global recession is easing and market speculators could get more risk appetite. The economy of the Euro-Zone shrank 0.5 percent last quarter after contracting 2.5 percent in the previous three months, according to a survey. The EUR rose for a third day against the USD before a U.S. report could show that the retail sales increased at the fastest pace in six months, as economists expected. The JPY fell against the EUR after the MSCI Asia- Pacific Index of regional shares climbed 1.4 percent. The EUR/JPY rose for a second day to 136.48 after touching a high at 136.31. The EUR/USD increased to 1.4226 after opening at 1.4188 and touching a high at 1.4235.
Yesterday, the USD/CAD fell the most in almost a month as the nation’s trade deficit narrowed more than expected and the S&P 500 climbed 1.2 percent. Yesterday, the USD/CAD fell to 1.0893 after opening at 1.1017.
AUD/JPY
Since the middle of July the AUD/JPY has been moving inside a bullish trend channel. After it crossed the lower line of the channel, it reached the second support Pivot point at 77.94. Afterwards the market recovered back over the first support at 79.80 and it trades at the moment close to the lower line of the channel. If the market goes through the lower line and the middle pivot point at 80.86, it may gain more towards the first pivot resistance level of 82.72.
AUD/CHF
As you can see, the AUD/CHF recovered after it touched the lower Bollinger band and the upper line of the Fibonacci fan, which starts from the middle of July. It trades currently close to the middle Bollinger band and the horizontal resistance of 0.90. If the pair crosses these lines, it may make further gains towards the upper Bollinger band.
