Speech of Ben Bernanke supported the greenback today.
Asian and European trading sessions:
Australian Dollar: Australian dollar strengthened against the yen today since the released Australian retail sales data turned out to be above expectations.
The Reserve Bank of Australia left the principal rate unchanged today at the level of 4.75%.
Euro: Euro demonstrated positive dynamics during most of the day on Tuesday. The European currency was supported by the investors’ expectations for the principal rate increase by the ECB. The EUR/USD pair managed to set maximum at the level of $1.3854.
The publication of the Euro-zone fundamentals today was strong and above expectations. The German unemployment dropped much below forecasts and the Euro-zone unemployment was 9.9% against the expected 10.0%. The released PMI indices were above forecasts.
US Dollar: The demand for the high-risk assets continued to be strong today, which pressured the greenback.
British Pound: Sterling followed the positive trend of the euro and the GBP/USD rate almost reached the $1.6323 maximum.
Japanese Yen: The USD/JPY pair hit minimums at the Y82.02 range.
Canadian Dollar: According to the forecasts, the Bank of Canada left the principal rate at the previous level of 1.00%. In conformity with the experts’ opinion, Canadian exporters experienced difficulties due to the elevated rate of the Canadian dollar, which resulted in the decision of the Bank of Canada to maintain the rate at the same level.
New-Zealand Dollar: The New-Zealand dollar dropped dramatically against its major counterparts after the speech of the Prime Minister, who mentioned the possibility of the interest rate reduction, as an outcome of the devastating earthquake, that struck the country.
Oil: On Tuesday the oil prices continued to stay at their maximum levels, due to the instability in the Middle East region. Brent oil showed maximums of $115.42 per barrel after the speculations that the Saudi Arabia would not produce oil until the price reaches $120 per barrel.
Gold: The gold rate renewed its yearly maximum at the $1430.61 mark per ounce today.
American trading session:
US Dollar: After the speech of the head of the FRS, Ben Bernanke in the Senate, the trading dynamics changed, and the US dollar started to gain strength against its competitors. The EUR/USD pair dropped below the $1.3800 level and the pound decreased as well.
Technical analysis for 02/03
EURUSD
The pair has rolled back to 1.37486. If this level is broken the pair will decline to Moving Average (500) at 1.36530.
Resistance: 1.38554, 1.39600, 1.40690
Support: 1.37486, 1.35984, 1.34882
GBPUSD
The pair has reached 1.63316 and rolling back to 1.62050. If this level is broken the pair will decline to 1.60920.
Resistance: 1.63316, 1.64636, 1.65706
Support: 1.62050, 1.60322, 1.58543
USDCHF
The pair has found support at 0.92282 and may roll back to 0.93435.
Resistance: 0.93435, 0.95125, 0.96574
Support: 0.92282, 0.91658, 0.90202
USDJPY
The pair has reached 82.219 and aiming to 81.600.
Resistance: 82.219, 83.065, 83.933
Support: 81.399, 80.438, 79.707
AUDUSD
The pair couldn’t reach 1.02235 and rolled back to 1.00907. If this level is broken the pair will decline to 1.00067.
Resistance: 1.01744, 1.02705, 1.03535
Support: 1.00907, 1.00067, 0.99207