The prominent Aussie Dollar lost steam as it retrieves its lows approaching the vital prices support of 0.9170. Currently, working in the Asian session at the 0.9185 levels may see some more loses along the trading sessions when it opens in the European and American markets. The series of high price points of 0.9320-80 range would have set it as the initial major resistance for the Aussie at this time which now could be determined as price high for the previous 5 weeks of trading. this goes the same way with the NZUSD at the current price level of 0.7080 resting on top of its trend line which it may also attempt to penetrate to the price levels of 0.7050-60 which is within striking distance of the trading range for the week.
The shift of US Dollar funds from financial stocks has led investors to swiftly changed sentiments to a safer haven denominated investment. The market situation basically has been disturbed by the report of the SEC accusing Goldman Sachs of fraud. Which obviously spilled over on some other financial institutions as well as hedge funds moving lower. It may not be as a direct effect but the market negative outlook may have indirectly lent some support for the USD corrective mode from the previous week. As did in the commodities market's movement for Gold and other precious metal including the oil prices.
The shift of US Dollar funds from financial stocks has led investors to swiftly changed sentiments to a safer haven denominated investment. The market situation basically has been disturbed by the report of the SEC accusing Goldman Sachs of fraud. Which obviously spilled over on some other financial institutions as well as hedge funds moving lower. It may not be as a direct effect but the market negative outlook may have indirectly lent some support for the USD corrective mode from the previous week. As did in the commodities market's movement for Gold and other precious metal including the oil prices.
Relatively, the market in the European market discounting the Greece bailout's and other economic report have led the EURUSD and the GBPUSD to continue to move lower with the EURUSD at 1.3462 attempting to go back to the previous low of 1.3280. Having completely filled in the previous opening gap which we also stated is now in the position to continue its mid-term downtrend. Meanwhile, the GBPUSD looks a litle more steadier to lower parameters working at 1.5250.
Technically, both currency pairs shows no direct reactions to move higher for the moment as market participants are waiting eagerly for additional reports on the current Goldman situation and the Obama's administration continued reaction in handling similar cause and effects to the market.
The USDJPY and USDCHF is poised to react the same old story of contradicting movements with the USDCHF more inclined to move with the USDX higher and the USDJPY to do otherwise. This can hold true on a day to day basis while others maintain their stance for the European majors like the Euro to move lower than the Pound would.
The cross rates have been also in line with the general direction of the market to move lower as no real volume build up on the financial futures and open interest have shown no keen interest for the time being. Risk appetite and risk aversion on the currency pairs have steadily been lower from the opening 2nd quarter of the year.
We shall maintain a steadier to neutral stance while we also await some more developing outlook both on a technical and fundamental stand point. Not that we are uncertain but we'd rather be able to keep more on what we have made from the previous market trades that has been favorable for the USD directional upward move from the 1st quarter of the year.
Good Luck and Happy trading!
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