26 Sep 2013
Session Recap: Euro & GBP’s breaks point further gains vs Dollar
FXstreet.com (San Francisco) - The Greenback continued under pressure on Wednesday as investors are worrying the US government technical default if the Congress fails to reach an agreement on debt ceiling. The EUR/USD broke above the 1.3500 area and the GBP/USD closed around 1.6080.
The EUR/USD advanced for first time in the last four sessions with the pair recovering from 1.3460 to close above the 1.3500 at 1.3525. The Euro broke "above a short term descendant trend line coming from this month high," comments FXstreet.com Chief Analyst. "The pair enters Asian session with a pretty positive tone, as the hourly chart shows a limited pullback from the high, price above 20 SMA and indicators holding in positive territory."
The GBP/USD broke above the recent days' range of 1.5980/1.6060 with the Sterling rallying to reach intra-week high at 1.6086. Cable highs are "good signs for cable longs, many of whom got the jitters after the break down to 1.5956 yesterday," comments ForexLive's analyst Adam Buttom. "The next layer of offers is up at 1.6090/1.6100 but the size isn't substantial. Bigger offers sit at 1.6145/50."
On the other side, the USD/JPY closed down for fourth day. Since September the 20th highs at 99.65, the US Dollar has lost around 130 pips to 98.35, lowest since Fed's non-taper day and below the 98.50 key support. The pair is closing the day at 98.45, navigating around the 61.8% Fibonacci level pullback. Pay attention to 98.16 (August 18th highs) followed by 97.76 (August 17th highs) as supports.
On commodities, the Oil is performing its fifth straight negative day. Since September 18th, the US oil has lost $6.24 to price at lows since July 8th at $102.19. "US crude is near a 5-week low and Canadian oil is trading at a whopping $30 discount to WTI," affirms Buttom. "The widest spread since February." US oil is now trading at $102.35, 0.75% down in the day.
The Gold, on the other side, confirmed its yesterday's positive daily Long-Legged Doji candle and the XAU/USD rose 1.31% on the day after advancing $17.30 to close at 1,333.60.
Main headlines in the American session:
US: Durable Good Orders rose 0.1% MoM in August
US: New Home Sales rise by 421.000 in August
US may vote on debt limit bill on Friday
ECB's Asmussen: Changes to ESM treaty needed before it can be used for resolving banks
The deadlines for the budget and debt limit
US stocks closed down as budget worries continue
The EUR/USD advanced for first time in the last four sessions with the pair recovering from 1.3460 to close above the 1.3500 at 1.3525. The Euro broke "above a short term descendant trend line coming from this month high," comments FXstreet.com Chief Analyst. "The pair enters Asian session with a pretty positive tone, as the hourly chart shows a limited pullback from the high, price above 20 SMA and indicators holding in positive territory."
The GBP/USD broke above the recent days' range of 1.5980/1.6060 with the Sterling rallying to reach intra-week high at 1.6086. Cable highs are "good signs for cable longs, many of whom got the jitters after the break down to 1.5956 yesterday," comments ForexLive's analyst Adam Buttom. "The next layer of offers is up at 1.6090/1.6100 but the size isn't substantial. Bigger offers sit at 1.6145/50."
On the other side, the USD/JPY closed down for fourth day. Since September the 20th highs at 99.65, the US Dollar has lost around 130 pips to 98.35, lowest since Fed's non-taper day and below the 98.50 key support. The pair is closing the day at 98.45, navigating around the 61.8% Fibonacci level pullback. Pay attention to 98.16 (August 18th highs) followed by 97.76 (August 17th highs) as supports.
On commodities, the Oil is performing its fifth straight negative day. Since September 18th, the US oil has lost $6.24 to price at lows since July 8th at $102.19. "US crude is near a 5-week low and Canadian oil is trading at a whopping $30 discount to WTI," affirms Buttom. "The widest spread since February." US oil is now trading at $102.35, 0.75% down in the day.
The Gold, on the other side, confirmed its yesterday's positive daily Long-Legged Doji candle and the XAU/USD rose 1.31% on the day after advancing $17.30 to close at 1,333.60.
Main headlines in the American session:
US: Durable Good Orders rose 0.1% MoM in August
US: New Home Sales rise by 421.000 in August
US may vote on debt limit bill on Friday
ECB's Asmussen: Changes to ESM treaty needed before it can be used for resolving banks
The deadlines for the budget and debt limit
US stocks closed down as budget worries continue