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Currency Pair Overview:
Major Moves Dominate Friday Trading
Overall, the currency market came to life during the European and U.S. session, something that rarely happens on a Friday during the summer. The momentum in the U.S. session came after two top tier news announcements were released. First, the existing home sales report shows that sales have increased to the highest level in almost two years. The second was a speech given by Federal Reserve Chairman Ben Bernanke in which he stated that the global economy is beginning to see signs of recovering from the recession after “aggressive” steps were taken by many central banks and governments.
The euro (EUR/USD) bounced off the 20 day moving average in the early part of the European session and has broken above the high of the previous ten sessions which was located at 1.4330. At the start of the U.S. session the pair retraced to the 1.4275 area which has turned from previous resistance to current support. The pair is currently finding slight support just above the 1.4330 area.
The pound (GBP/USD) continued to trade in a range between the 20 and 50 day moving averages after attempting to break out of either side in the past 24 hours. After finding support at the S1 pivot level at 1.6435 the pair followed the rest of the market and then ran head on into the 20 day moving average at 1.6591 which also houses the R1 resistance point.
The aussie (AUD/USD) strengthened 0.29 percent today. The pair has been having a difficult time breaking above the 20 day moving average in the vicinity of 0.8230 for the better part of the week. The pair finally managed to rise above it by 70 pips before retracing to find that area as support during the U.S. session.
The cad (USD/CAD) found strength today, adding 0.37 percent as the pair obliterated the 20 day moving average at 1.0863. The pair found support at the S2 (1.0777) level before retracing to find that the 20 day has now turned to resistance.
The swissy (USD/CHF) has had a fairly wild ride during the U.S. session. After finding support at the 1.0560 level the pair shot to 1.0630 before once again falling back to the S2 level at 1.0578 late in the session.
The yen (USD/JPY) has not managed much of a change on the day despite the wild fluctuations seen. The pair found support at the S2 level (93.50) throughout much of the European and U.S. sessions. The pair the rapidly moved to the R1 level at 94.50 before ending the day at the neutral pivot point at 94.20.
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