Daily Market Review – Asian Session – Aussie reaches new 29 year high at 1.0597 against the USD

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The Euro continued to gain in the Asian session, as the recent downtrend has now been clearly reversed to an uptrend. The Asian session saw the single currency rise as high as 1.4412 as it gained over 80 pips from an open of 1.4329. The current uptrend of the EURUSD pair on the H1 chart is reaffirmed by such indicators as the MACD and ROC (22) oscillator, however the market may see some caution in the buying of the currency as it is reaching a overbought level. Strong support for the pair is seen around 1.4320, where both the 55 exponential and 20 simple moving averages are at this moment in time. It appears that the market has sought the Euro once again, looking at the last few days’ dip as a good opportunity for better reentry levels.

The Sterling also gained against the Dollar today, rising by some 35+ pips to reach a session high of 1.6347. The Asian session saw the Sterling trading relatively steady in a smooth uptrend following a relatively steady US session which saw the GBPUSD pair trading steady around the 1.6315 levels. The market is in anticipation of the Bank of England minutes which are scheduled to be released later today at 08:30 GMT, with an expectation of a dovish outlook following the worse than expected recent inflationary figures that have come out from the UK.

The Australian Dollar rose steeply in today’s Asian session to reach a new 29 year peak at 1.0597, after having ascended by over 75 pips. In spite of a setback earlier in the week the Aussie has bounced back and risen from yesterday’s low of 1.0442 as it was bolstered by strengthening commodity prices. Support for the Aussie is seen at the previous 29 year high of 1.0577, with resistance around 1.0660 – the 161.8% Fibonacci extension of the April 15^th to the April 19^th drop. The current level for the Aussie is around 1.0585.

After having dropped over 300 pips in the past couple of days, the USDJPY experienced a swing in the hourly chart which saw it break above the 55 hour average and rise by some 55 pips to trade around the 82.95 level as it approached the end of the session. Support for the Yen is seen around the 82.75 level, where the current 55 hourly moving average is located.

Gold traded very close to the all time high reached in yesterday’s US session as it appreciated from an open of $1496.5 to within 2 pips of the all time high at $1499.0 as yesterday’s worries of Standard & Poor’s potential downgrading of the US bonds saw the market take interest in the safe haven commodity.