Investors’ optimism growing on Tuesday. Asian and European trading sessions:
Euro: The EUR/USD pair managed to reach maximums at the $1,3145 level. Positive results of the bond auction in Spain and Ireland supported the euro. Investors’ optimism grew as the concerns over the European budget crises dropped.
US Dollar: On Tuesday the greenback was under pressure as the expectations for the negative US fundamentals (especially in the housing market) reinforced. Concerns that the US economy rehabilitation rate continued its slow down pace strengthened. Market participants were waiting for the results of the FOMC meeting. Experts forecasts confirm that the FRS would keep the interest rates at the low levels during the long period of time.
British Pound: The pound extended its decline and demonstrated a sharp drop on Tuesday. The GBP/USD rate reached the $1,5500 minimums. The released UK budget deficit for August showed largest figure from 1993.
Japanese Yen: The yen started to strengthen again, as market participants expected the Japanese government to undertake additional measures aimed to weaken the national currency.
New-Zealand Dollar: The concerns over the possibility that the Reserve Bank of New-Zealand would not raise the interest rate, pressured the national currency. American trading session:
US Dollar: According to the expectations, the interest rate was left at the previous level of 0,25%, and the FRS mentioned that the principal rate would not be increased for the extended period of time. The low rehabilitation rate during the recent months has been confirmed as well. The following the decision statement also noted that the housing market was still at the depressed level. The economic outlook remained uncertain.
Japanese Yen: Due to the positive results of the US housing data, the Japanese yen rate dropped against the euro, since the demand for the high-yielding assets increased.
The USD/JPY pair showed minimums at the Y85,26 mark.
Australian Dollar: Australian dollar demonstrated growth on the wave of increased optimism.
Technical analysis for 22/09 EURUSD
The pair has reached resistance 1.33143. The next strong level maybe met at 1.34882.
Resistance: 1.33143, 1.34882, 1.35984
Support: 1.30901, 1.30277, 1.28630
GBPUSD
The pair is trying to stay above Moving Average (500) 1.55763. Once the pair breaks resistance at 1.56722 the pair will continue rising to the next resistance at 1.58543.
Resistance: 1.56722, 1.58543, 1.60322
Support: 1.54842, 1.52523, 1.50581
USDCHF
The pair is trying to close below support 1.00209 and aiming to test 0.99066. But MACD convergence may stop pair from declining.
Resistance: 1.00209, 1.01498, 1.02747
Support: 0.99066, 0.97914, 0.96616
USDJPY
The pair is working out the MACD convergence. The pair is correcting after a sharp rise and broke 85.161. Next aim is of correction is at 84.260.
Resistance: 85.161, 86.246, 87.014
Support: 84.260, 83.330, 82.219
AUDUSD
The pair has broken 0.94898 and aiming to 0.96392.
Resistance: 0.96392, 0.97715, 0.98436
Support: 0.94898, 0.93788, 0.92170
