FOREX TRADING

Good morning from sunny Hamburg and welcome. We approach the end of the week and the NZD could climb versus all of its most traded counterparts in contrast to the EUR. The EUR dropped against its most major counterparts. Also we are going to report about the USD and the CAD. However, we wish you a successful trading day

Markets review

The NZD strengthened versus all of its 16 major counterparts before a report forecast may show that the nation reached a trade surplus for a fourth month in April. The NZD could retrace some of its yesterday`s drop of more than 1% before a statistics bureau report signalized that economists estimate will show a surplus of 455 million NZD. The NZD and the AUD climbed on speculation that their declines in May, on concern Europe`s debt crisis will slow global growth, have been too rapid. The NZD increased 0.4% against the USD and touched 0.6656. The JPY decreased versus the NZD as much as 0.5% and traded at 59.89. The AUD rose 0.3% to 0.8237 versus the USD. Also the JPY has lost 0.3% against the AUD and reached 74.10. The Current benchmark interest rates are 4.5% in Australia and 2.5% in New Zealand, compared with 0.1% in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations. The risk in such trades is that currency market moves will erase profits.

The CAD dropped to near the lowest in six months against the USD as crude oil, the biggest export commodity, fell from intraday highs and U.S. stocks slipped on concern a sovereign debt crisis in Europe will worsen. This month, the CAD has been losing 4.9% against the USD. The CAD lost 0.3% versus the USD and dropped to 1.0706. Furthermore the Canada`s Government bonds fell in May.

The EUR weakened against 13 of its 16 major counterparts before a release forecast to show that French consumer confidence fell in May and on concern that the region`s debt crisis will lead to slower economic growth. The EUR was at 1.2170 versus the USD and dropped to 109.47 against the JPY

Technical analysis

NZD/JPY (1 Hour)

In May, the NZD/JPY has been trading in a zigzag movement. Yesterday, the currency pair touched its lower Bollinger Band simultaneously with its support around 59.52 and the prices recovered. Whenever the NZD increased after touching the lower Bolls, it could climb to the upper Bolls. Next resistance could be around 60.50.

XAU/USD (4 Hour)

After unexpectedly fell to its support, the XAU could recover and started a bullish trend channel against the USD. Currently, the price reaches the lower line from the trend channel. During the last week, whenever the currency pair touched the lower line it could recover. Also an increasing OBV indicator may support a continuing upward trend.

EUR/USD (1 Hour)

As you can see, the EUR has been trading within a bearish Andrews Pitchfork channel against the USD. After touching the middle line of the channel, the EUR recovered. An increasing RSI indicator may support a further bullish trend, but it remains to be seen if the currency pair could cross the upper line of the channel. Next resistance is around 1.2240.

AUD/JPY (1 Hour)

Since the middle of May, the AUD has been trading in a zigzag trend versus the JPY. Recently, the currency pair recovered on its important Fan around 73.90 (50.0). Now it seems that the AUD could earn further gains. Also a crossing Stoch indicator may support a continuing bullish trend. Next resistance could be around 74.77

EUR/NZD (1 Hour)

After reaching its support level around 1.8225, the currency pair recovered like one time before and near to its resistance around 1.8340. Now it remains to be seen if the EUR could cross this level. A crossing Stoch may indicate a successful breakthrough and an upward trend