The euro traded at almost 12 year low against the dollar

Good morning from Hamburg and welcome to our last Daily FX Report. Yesterday, a Japan Railway maglev train hit 603 kilometers per hour on an experimental track in Yamanashi, setting a decisive new world record. The train spent 10.8 seconds traveling above 600 kilometers per hour, during which it covered 1.8 kilometers. Unlike traditional trains, maglev trains work by using magnets to push the train away from the tracks and drive the train forward. Japan's maglevs don't use metal tracks. Instead, they float nearly 10 cm above special guide ways, allowing for frictionless movement. And one more thing, it is not only incredibly fast, but also safe.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

The euro traded at almost 12 year low against the dollar as investors concern about Greece’s future grew, with the ECB said to be studying ways to rein in emergency financing to the nations lenders. The 19 nation currency fluctuated as the ECB staff proposed increasing constraints on banks when they borrow from the bank of Greece. German investors’ confidence unexpectedly fell for the first time in six months in April, suggesting the debacle is weighing on Europe’s largest economy. The euro was little changed at $1.0736 as of 5 p.m. in New York, following a 0.6 percent decline on Monday. It fell as much as 0.7 percent earlier Tuesday. It added 0.4 percent to 128.47 yen. The Japan’s currency fell 0.4 percent to 119.67 per dollar. The shared currency is trading near of its lows of $1.0458 set on March 16th, and is on track to decline for a 10th month against the dollar. Some analysts forecast the two currencies may reach parity this year, considering the different stage of both economies, with the U.S already considering the right moment to increase interest rates, that could be as soon as this September, and Europe, immerse in its quantitative-easing stimulus plan. Australian dollar was less than a cent from parity with New Zealand’s currency before the larger nation reports inflation data that may sway the central bank’s decision in interest rate policy. The Aussie held a three day decline versus the Kiwi after minutes yesterday of the Reserve Bank of Australia’s April meeting showed it saw an advantage in waiting for more economic figures before deciding on further rate cuts. The Australian dollar was little changed at NZ$1.0064 at 8”20 in Tokyo. It was also steady against dollar at 77.14 U.S. cents, after a 1.2 percent declined in the previous three sessions.

Technical Analysis

GBPJPY (H4)

As we can see in the chart below, the GBPJPY is in a very interesting point, moving above the 200 day moving average and testing the long-term trendline, coinciding with the 38.2% of move down from February 27th pretty bullish and should continue jumping, with two clear resistances above, 179.30, and 179.90, coinciding with the 50% of the mentioned move down. Below the current level, the 177.25 should work as the closest support in case of failing break.

Support & Resistance (H4)