Good morning from Hamburg and welcome to our Daily FX Report. It seems that the EUR/USD keeps staying on a high level until some interesting U.S. economic data will publish. Anyway, we wish successful trading signals and a nice day.
Market review
The USD extended its downswing against a basket of major currencies. The EUR/USD traded near to its year high and is expected on a new year high if a U.S. report will show today that the industrial output increased. The German investor confidence index rose to the highest level in more than three years as economists expected. In the early Tokyo trading hours the EUR/USD climbed to 1.4679. The AUD and NZD are also near to their year highs versus the USD after a report showed yesterday that the U.S. retail sales rose by the most within the last three years, which encouraged investors to buy riskier assets. Likewise, the CAD recovered from its previous day losses versus the USD on concern the rising U.S. retail sales could boosted the demand for commodities yesterday. The Chairman of the Federal Reserve, Ben Bernanke, is convinced that the worst U.S. recession after the 1930s has probably ended. The GBP declined against the EUR to the lowest level since May after Bank of England Governor Marvyn King told lawmaker in London that cutting the deposit rate is “something we’re looking at”. The GBP/USD slid the most in more than four weeks to 1.6403 at its lowest level.
EUR/CHF
The EUR/CHF has been trading in a bearish environment but could recover at least and aimed the second Fibonacci fan. Though after passing through its pivot point, it seems that the bears entered the market again and slow down the upward movement and the RSI indicator shows a overbought market. It remains to be seen, if the first pivot resistance may also cross. In this case it could boost the bulls again.
EUR/AUD
Since June, the EUR is bearish against the AUD, but now it seems that the currency pair could also cross the fourth Fibonacci fan and will quit the downward trend. Otherwise, the MA Oscillator pulled back, crossed its signal and indicated for further losses. In this case it remains to be seen if the support at 1.6852 will be strong enough to stop the bears.
