Forex Trading News – Euro gains in Asian session, but speculators see the move as temporary

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This week’s first session, sees the Euro trading with some optimism as the single currency appears to have found some support around the 1.4340’s as it bounced up to a session high of 1.4405. Market participants however expect that the recent pause on the single currency’s steep decline is temporary and as such long positions are being taken with caution. The Euro opened this week up at 1.4359, slightly above last Friday’s close, as it smoothly ascended throughout the session. The current level of the Euro is some 100 pips above its 55-day moving average, currently at 1.4275 – the next strong support level for the single currency. The recent decline of the Euro comes about as speculation of Greece re-adopting the Greek drachma as its base currency sent a dovish outlook for the Euro.

The Sterling traded in a range in today’s Asian session around the 1.6370’s, oscillating by some +/-20 pips throughout the session as it continued on at similar levels seen at the later stages of last Friday’s US session close. The Sterling has dropped in correlation to the Euro in the past few days, as a selloff of the Euro strengthened the Dollar across the board, pushing the GBPUSD pair down by over 350 pips in the space of a few days. The Sterling is currently trading around the 1.6390’s, with resistance seen at Friday’s high of 1.6462 and support around the 1.6350’s – a level which it failed to break past on a number of occasions.

The USDJPY pair traded higher than Friday’s close of 80.61, as it ascended from an Asian session open of 80.61 to a high of 80.83 by midsession, before dropping back on its gains to trade just below the session open. Support for the USDJPY pair is see around 80.20 – close to last Friday’s low, with further support at the recent 7 week low of 79.55.

The Australian Dollar traded with a firm upward movement in today’s Asian session, boyed by last week’s central bank’s warning that the country’s interest rates need to rise in order to contain inflation, adding a hawkish outlook to the Aussie. The AUDUSD pair opened up at 1.0708 and ascended over 60 pips to reach a session high of 1.0771, closing in on the current resistance level of 1.0801 – last Friday’s high – as it trades around the 50% level of the recent drop which saw it fall over 450 pips between last Monday and Thursday.

Gold has had a rather volatile Asian session, opening up with a sharp decline to see it depreciate by some $5 from a session open of $1494.4 to a low of $1488.6. The precious commodity the rallied as positive economic data from Australia has seen the commodity stay in correlation with the AUD, as it went on to appreciate by over $15 to reach a session high of $1504.4 per ounce.