Reaction to the Ben Bernanke speech.
Asian and European trading sessions:Euro: On Wednesday the EUR/USD pair demonstrated minimums at the $1.3600 range and maximums at the $1.3650 mark.
The economic docket today did not contain any important releases, which influenced the trading pattern.
US Dollar: The Federal Reserve Chairman, Ben Bernanke, expressed his support of the QE2 program in his statement today. He mentioned that this program would help job creation and economic growth. Ben Bernanke also stated that the unemployment level would remain above the “normal level”.
British Pound: GBP/USD pair reached the $1.6100 maximum.
Japanese Yen: The USD/JPY pair traded in the range of Y82.20 – Y82.60.
American trading session:
US Dollar: Greenback started to lose its positions during the American trading session, since Ben Bernanke did not mention any intentions to reinforce the credit monetary policies.
As a result, the EUR/USD pair managed to hit the $1.3730 maximums.
British Pound: The pound followed the euro growth and the GBP/USD pair reached the $1.6125 highs.
Technical analyses for 10/02
EURUSD
If the pair stays above Moving Average (500) 1.36684 the pair will rise to 1.38554.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
GBPUSD
The pair has worked figure upside down Head and Shoulders. The pair may return to 1.62050 and 1.63316.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
USDCHF
The pair is trading around resistance 0.96574. If the pair stays above this level the pair will rise to 0.98114. If the pair will decline below 0.96574 the pair will reach 0.95125.
Resistance: 0.96574, 0.98114, 0.99201
Support: 0.95125, 0.93435, 0.91658
USDJPY
While the pair stays above 82.219 the pair will try to rise to Moving Average (100) 83.065. If the pair stays below 82.219 the pair will decline to 81.793.
AUDUSD
The pair has declined below 1.00907. It will bring pair to 1.00067.
Resistance: 1.00907, 1.01744, 1.02705
Support: 1.00067, 0.99207, 0.98436