Currency Updates:
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EUR/USD – under pressure |
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The pair has validated a falling wedge pattern and has broken below the 200-day moving average. Moreover, the daily RSI is badly directed and not oversold. Further weakness is therefore expected below 1.3780 with 1.3450 as a first target (previous overlap) and 1.33 in extension (November 2013 low and strong LT support). A third target is set at 1.31 (September 2013 low). Only a break above 1.3780 (horizontal resistance) will turn the outlook to bullish with a first alternative target set at 1.40 (last top) and a second one set at 1.4245 (OCtober 2011 top). |
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Australia |
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The S&P/ASX 200 index decreased 0.46% or 25.196pts to 5428.8 (day range: 5452 – 5423) on Thursday. The index is below its 20d MA (@ 5474) and below its 50d MA (@ 5460). 38% of the index constituents are above their 20D MA (vs 48% the previous session) and 47% of the shares are above their 50D MA (vs 54%). Australia’s unemployment rate was 5.8% in May (as expected, unchanged from April) and recorded 4.8K net decrease in employment in May (vs +10.0K expected, +10.3K in April). The participation rate was 64.6% in May (64.7% expected) vs 64.7% in April, according to the Australian Bureau of Statistics. New Zealand’s central bank has raised the official cash rate by 25 bps to 3.25%. |
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