Previous session overview

EURUSD remained in a narrow range close to the recent high during the Asian session. Starting the day at 1.3235, the pair tested support at 1.3200 before rising back to the high as traders in Tokyo took profit. With European traders joining in, the pair was again sold off and is currently trading at 1.3200.

GBPUSD behaved much in the same way, falling from the high at 1.5960 before turning and re-testing the 1.5965 once again before european traders sold. The trading range was slightly larger than EURUSD with 50 pips from 1.5965 down to 1.5915.

The Australian Dollar also remained range-bound but fell and backed-up twice this morning. Falling from its opening at 0.9146 down to 0.9110it quickly returned back up to 0.9146 on the back of a strong Q2 Housing Index gain of 3.1%. The rise was short-lived and the pair widened its low to 0.9098 on its second attemp, just to be bought back once again to rise to 0.9140.< /p>

USDJPY was the only major pair to continue its directional move for a weaker US Dollar. Opening the session at 86.70, the pair came under pressure at the Tokyo opening, falling more than 1.5% to a low of 85.33 before staging a mini-bounce to 85.55 as European traders picked up the cheapest USDJPY of the year.

Market expectation

Expect to see a quiet European session this morning, without any major data release due in Europe. The focus will be on maintaining either technical trading ranges set in the Asian session before continuing with the recent trends.

EURUSD has a first important support at 1.3190, a rising supportive line that has been in place since last week. while it holds, expect to retest the recent 1.3260 top followed by a possible extension towards 1.33. A break at 1.3190 risks a drop to strong support at 1.3090 or even 1.3000.

There is less upside potential in Cable with the psychological 1.60 level holding off so far. The pair has beentrading in a strong bull trend since early June, but the recent spike from 1.57 seems a bit overdone and while the 1.60 resistance lasts, there is high probability of a pullback as low as 1.57 or even 1.55, where the 2-month rising trendline comes in.

USDJPY is quickly approaching its all-time low at 84.78 from November 2009. A retest of that level seems likely and a break would open the path to 80 in the medium term. While the support holds, there is ample space for rebounds up to the 2-month bearish trend-line currently above 87.25, only a break above that level seems to have the power to keep the Dollar from falling to much lower levels.EURJPY and GBPJPY also look vulnerable to the downside.

Disclaimer: the data made available by Dukascopy Bank SA is for informational purposes only. Publication of this data by Dukascopy Bank SA does not constitute provision of investment advice and Dukascopy Bank SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

Comments

Add New Search

Write comment
Name:
Email:	do not notifynotify
Website:
Title:
Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.26

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."