Forex

Risk sentiment boosted the high-yield assets’ rally

By Forex Metal

Asian and European trading sessions

Euro: High-risk assets were supported on Wednesday by the released positive fundamentals from Australia and China. The EUR/USD pair grew above the level of $1,2700.

The European trading session set maximums at the $1.2800 mark.

US Dollar: The US dollar was under pressure on Wednesday, as the risk appetites increased.

British Pound: The sterling also showed consolidation and the GBP/USD pair reached $1,5400. But the Manufacturing Purchasing manager index for August dropped to 54.3 against its forecast of 57.0, and the pound reacted with a decrease.

Japanese Yen: The yen demonstrated decrease against the greenback and the euro during the morning trading as the demand for the save-haven currencies dropped, as optimistic fundamentals were published in Australia and China.

The USD/JPY pair traded in the range of Y84,00-Y84,60.

Australian Dollar: The Australian Gross Domestic product for the second quarter showed unexpected growth for 1.2% against the forecast of 0.9%. This factor boosted the risk sentiment of Wednesday.

Oil: Oil rates were supported by the released Chinese business activity manufacturing index, which showed growth and turned out to be above its forecast. The oil traded around the $72.40 level per barrel.

Gold: The optimistic attitudes pushed gold rate higher, and the price reached $1250 per ounce.

American trading session

Euro: The advance of the euro fully depended on the risk sentiment on Wednesday, but market participants were looking towards the ECB decision tomorrow.

US Dollar: The released US fundamentals rendered additional support to the high-yielding assets. The ISM manufacturing for August turned out to be 56.3, above its forecast of 52.8 and previous level of 55.5.  As a result, the greenback strengthened against the yen.

In addition, the US stock markets closed the trading day with a considerable growth, and the concerns over the double-dip recession weakened.

 
Technical analysis for  2/09

EURUSD

The pair is trading near Fibonacci 23.6% at 1.26326. The pair’s resistance is 1.28630.

Resistance:  1.28630, 1.30277, 1.31181

Support:  1.27009, 1.25690, 1.23907

GBPUSD

If the pair stays below 1.54842 the pair will decline to 1.52523.  If the pair stays above 1.54842 the pair may rise to 1.56722.

Resistance: 1.54842, 1.56722, 1.58543

Support:  1.52523, 1.50581, 1.48532

USDCHF

The pair has declined to 1.01498. If the stays below this level the pair will drop to 0.99821.

Resistance:  1.02747,  1.03987, 1.05139

Support:  1.01498, 0,99821, 0,98567

USDJPY

The pair will decline to 83.330 if the pair stays below 84.260.

Resistance:  85.161, 86.246, 87.014

Support:   84.260, 83.330, 82.016

AUDUSD

The pair has broken 0.90284. If the pair stays above this level, the pair will rise to 0.92170. Support at 0.89029.

Resistance:  0.90284, 0.92170, 0.92170

Support:  0.89029, 0.87243, 0.85760