Currency Updates:
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Forex pair of the day |
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EUR/NOK – rebound expected |
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The pair is pulling back on its strong support ahead of a rebound as the daily RSI is reversing up above its oversold area. Therefore, as long as 8 holds as a support (previous overlap and Fibonacci retracement of the previous up move), a rebound is likely with 8.3140 as a first target (horizontal resistance), and 8.54 in extension (horizontal resistance and previous top of December 2013 and February 2014). A third target is set at 8.72 (horizontal resistance). Only a break below 8 will turn the outlook to bearish. In this case, a first alternative target is set at 7.76 (strong horizontal support) and a second one is set at 7.65. |
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AUD/USD Intraday: the downside prevails. |
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Market Comment |
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Australia |
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The S&P/ASX 200 index declined 0.7% or 38.779pts to 5479.68 (day range: 5526 – 5478.5) on Tuesday. The index is below its 20d MA (@ 5480) and above its 50d MA (@ 5449). 50% of the index constituents are above their 20D MA (vs 66% the previous session) and 54% of the shares are above their 50D MA (vs 64%). Australia recorded seasonally adjusted current account deficit of A$5.7B in 1Q vs current account deficit of A$11.7B in 4Q, according to the Australian Bureau of Statistics. Australia’s retail sales rose 0.2% MoM in April vs +0.1% in March, according to the Australian Bureau of Statistics. |
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Economic Releases |
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AU 01:30: May AiG Perf of Services Idx |
