Currency Tech

EURUSD
R 2: 1.3530
R 1: 1.3425
CURRENT: 1.3306
S 1: 1.3280
S 2: 1.3200

USDJPY
R 2: 95.00
R 1: 93.30
CURRENT: 92.53
S 1: 90.80
S 2: 88.75

GBPUSD
R 2: 1.5170
R 1: 1.5080
CURRENT: 1.4848
S 1: 1.4784
S 2: 1.4650

AUDUSD
R 2: 0.9329
R 1: 0.9252
CURRENT: 0.9086
S 1: 0.9066
S 2: 0.8945

USDCAD
R 2: 1.0400
R 1: 1.0320
CURRENT: 1.0214
S 1: 1.0070
S 2: 1.0000

Market Brief

The USDJPY pair traded at 92.43 earlier today declining from yesterday's high of 92.95 after failing to break the 93 level on speculation Japanese exporters took advantage of its largest weekly loss this year to purchase the currency before the country's fiscal year ends next week. Japan's core consumer prices were -1.2% from -1.3% in February adding pressure on the BOJ to eradicate deflation that is hampering the economic recovery. BOJ board members will update their forecasts for inflation and economic growth in a twice-yearly outlook report to be published at the end of April while predictions in January for core prices were that it will fall 0.8% in the year that starts April 1 and drop 0.4% in the next one year. The USDJPY may rise toward the highest level since January after passing the top line of the cloud on ichimoku charts, according to technical analysis. The pair is also poised to extend gains should it end this week above the 200-day MA of 91.53 which it broke yesterday, moving upto 93.30 levels while on the other hand, the pair may slide to about 90 should it fail to end this week above the 200-day MA.Meanwhile, the EURUSD pair advanced to 1.3319 in early Asian trading after falling to 1.3268 yesterday, the weakest since May 7 and holding above the support level of 1.3250 after ECB President Jean-Claude Trichet said he welcomed an EU agreement on an aid plan for Greece. Trichet added that he was happy the region found a solution, toning down his earlier criticism over the IMF's possible involvement taking a complete opposite stance of his earlier statement when he said that an IMF role in the funding of a rescue plan for Greece would be very, very bad. Trichet is concerned that turning to the IMF to help Greece cope with the EU's largest budget deficit would show that Europe can't fix its own problems and earlier this month dismissed such a move as inappropriate. EU President Herman Van Rompuy said that the majority share of funding for Greece would come from the EU, with the rest from the IMF which could contribute around one-third.

NZDUSD gained as the nation's trade surplus widened to NZ$321 million in February as exports rose 5.3% from January to NZ$3.32 billion, while imports increased 3.8% to NZ$3 billion after commodity prices rose, adding to evidence the nation's economic recovery is gaining traction. NZDUSD rose 0.2% to 0.7050 in early market trade. AUDUSD headed for its first weekly loss this month as discord among European leaders over aid for Greece curbed investor appetite for higher-yielding assets and the currency traded at 0.9075.

Looking forward to the rest of the day, important fundamental data would be the Q4 GDP figures to be released from the US and University of Michigan's Consumer confidence but the focal point of trading today would be the final day of the EU leaders' meeting over the Greek crisis and investors would be anxiously waiting over the outcome after speculations of IMF role in the bailout with Trichet too giving his nod for the go-ahead.

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