Good morning from the one of the most beautiful city and welcome to Varengold’s FX Daily Comment. We hope you enjoyed your weekend and were able to relax for a new trading week. Today we will report mostly about the EUR against a basket of currencies. Good luck in trading.
Market review
The EUR rose against the USD for a second day before a private report may show that the European investor confidence climbed to the highest level since July 2008 as many economists expected. The European currency also rose against the JPY for a third day on expectations a German report could show that the national factory orders expanded in July for a fifth month. Germany’s Economy Ministry in Berlin is expecting to report that the nation’s factory orders gained 2 percent in July after rising 4.5 percent in June, according to a survey of economists. This would mean that the recession of the largest economy of Europe is easing. The EUR/USD climbed for a second day and reached a high at 1.4337 after opening the week at 1.4309. G-20 officials including U.K Chancellor of the Exchequer Alistair Darling and German Finance Minister Peer Steinbrueck said in London last week that it was premature to quit emergency measures to fight against the financial global recession, signalizing central banks will keep interest rates on a low level. The EUR climbed for the first day since the beginning of September against the GBP after it reached a high at 0.8756. The EUR/JPY climbed to 133.54 after opening at 133.00.
AUD/USD
During August, the AUD/USD traded below its resistance level at around 0.8470. After touching the strong resistance for the third time, the market finally broke through the 0.8470. The market has reached its highest level since September 2008. The crossing of this strong resistance could be a long-signal supported by the MACD which also signalizes a bullish development.
AUD/NZD
Since the end of April, the AUD had lost against the NZD inside a bearish trend channel. After breaking the lower line of the channel and pulling back inside, the market reached the resistance level around 1.2400 and the middle Bollinger band. If the AUD will be strong enough to break these two levels, we may expect more gains towards the upper line of the channel.
