Thursday, October 8, 2009
St. Petersburg, Another View
Forex latest Update :-
Forex: AUD/NZD: Aussie rallies above 1.2200 to 1.2245/55 area
Australian Dollar has rallied during the day so far, and the pair's bounce at 1.1935 low on Tuesday, has extended to levels above 1.2200/10 area, breaking, thus, above the downtrend line off mid September highs to test 1.2240 (Sept 30 high) at the moment of writing.
In case of breaking above 1.2240/55 (Sept 30/21 highs), next resistance levels would be at 1.2300 (Sept 14 high) and 1.2400 area, on the downside, support levels lie at 1.2155/70 , previous highs, and once below there, 1.2055/65 (Oxct 2 low/intra-day low) and 1.1990 (Oct 5 low).
According to the Varengold Bank Research Team, the pair has reached strong resistance area, and a pull back towards 1.2000 should be taken into account: "As we can see, the market has reached two strong resistance levels. The resistance levels are the horizontal line from the middle of September of around 1.22 and the bearish trend line, which has also been established during September. The pair could be overbought and may probably pull back towards the support line at around 1.20."
European markets rise on upbeat earnings season's kickoff; Euro and Pound, higher
European markets are going through considerable advances on Thursday following a positive start of U.S. earnings season and further advance on basic resources. Euro and Pound have rallied to last weeks' range tops.
Eurostoxx 50 Index advances 1.5%, while German DAX Index advances 1.3%, and the French CAC Index advances 1.51%. In the UK, the FTSE Index trades 1.0% higher in the first hours of trading.
Risk appetite has improved on the back of Alcoa's third quarter's profits. The aluminum producer swung into profits after three consecutive quarters with losses. Alcoa's shares have advanced 8.2% in Frankfurt market.
Euro and Pound testing resistance areas
EUR/USD remains struggling against 1.4770 resistance on rally from 1.4650 low on Wednesday; after having hit fresh two-week high at 1.4788.
GBP/USD rally from 1.5860 low, has extended to 1.6075, one-week high, although the Pound has eased to levels below 1.6050. At the moment the pair trades at 1.6040; 0.50% above its day-opening level.
USD/JPY recovery from 88.00 low on Wednesday was halted at 89.40, and the Dollar returned to levels right above 88.00. During European session, the pair has been moving between 88.15 and 88.40.