Good morning and welcome to the last Daily FX Report of this week. Today we don’t await any economic data from the U.S. but maybe the strong stock markets around the world will take influence on the FOREX market again. Have a successful trading day and a nice weekend.
Market review
The GBP declined against 15 of its 16 most traded counterparts on Thursday on renewed concern that the financial crises in the U.K. will be prolonged. Yesterday the EUR/GBP rose from 0.8924 at its opening to 0.8961 at its closing while the GBP/USD weakened for the second day from 1.6493 to 1.6453. The EUR/USD extended its winning streak after a U.S. report showed that housing starts rising to the highest level in nine months and manufacturing extended more than forecasts, adding since the recession in the world’s largest economy are easing. During the early Tokyo trading-session the EUR/USD took a break and traded nearly unchanged around the 1.4720 level. The NZD traded near a one-year high against the USD and headed for a 10-week gain, matching 1999’s record rally. The low interest rate near zero in the U.S. boosted the demand for higher yielding like the AUD and the NZD, so-called carry-trades. Though the AUD/USD rebounded on speculation its 24 % gain this year had come too rapidly, yesterday. Today the currency pair declined from 0.8728 to 0.8680 at its lowest level.
AUD/USD
During the September, the AUD/USD has been trading close to a bullish trend-line and touched its monthly high at 0.8775. Many traders closed their long positions and the currency pair rebounded near to its first support at 0.8677. As you can see this support line might cross the new bearish trend-line today and the long-term bullish one. Should the bears pull the AUD/USD under this both lines you may have to allow further declines near to the next support at 0.8557.
CAD/JPY
Since the beginning of August, the CAD/JPY traded in a bearish trend-channel and tried for a second time to cross the trend vainly. Initially the third attempt seemed to be successful and pushed the currency pair along to a bullish trend-line above the trendchannel. Now it remains to be seen, if the trend will be strong enough to quit the downward movement sustainable.
