Market Comment
Australia
The S&P/ASX 200 index gained 0.3% or 16.783pts to 5686.89 (day range: 5688.3 – 5651.6) on Monday. The index is above its 20d MA (@ 5564) and above its 50d MA (@ 5601). 65% of the index constituents are above their 20D MA (vs 68% the previous session) and 47% of the shares are above their 50D MA (unchanged).
| Foreign Exchange |
The US dollar was higher against its U.S. counterparts on Monday. There was no major economic data reported in the U.S.
The euro was mixed against its major pairs. In Europe, German PPI index fell by 0.1% in June, as expected, after being flat the month before. According to Rightmove, UK house prices were up by 0.1% in July after a 3% increase a month earlier.
The Australian dollar was higher against its major Pairs. |
|
Last |
%1D |
%YTD |
| EUR/USD |
1,0828 |
-0.02 |
-10.50 |
| GBP/USD |
1,5565 |
-0.22 |
-0.08 |
| USD/JPY |
124,29 |
0.19 |
3.84 |
| EUR/CHF |
1,0440 |
0.21 |
-13.11 |
| EUR/JPY |
134,5900 |
0.15 |
-6.97 |
| EUR/GBP |
0,6957 |
0.29 |
-10.43 |
| AUD/NZD |
1,1215 |
-0.93 |
7.01 |
| AUD/JPY |
91,6360 |
0.14 |
-6.27 |
| EUR/AUD |
1,4687 |
0.00 |
-0.82 |
| USD/CAD |
1,3000 |
0.21 |
11.87 |
| USD/CHF |
0,9641 |
0.22 |
-3.04 |
| AUD/USD |
0,7373 |
0.03 |
-9.81 |
| NZD/USD |
0,6574 |
0.72 |
-15.69 |
|
|
Currency Updates:
Medium Term Strategy: Forex Pair of the day
USD/JPY – further advance
The pair has rebounded above the upper boundary of an Ascending Triangle. Moreover, the ascending 200-day moving average is coming in support and the daily RSI has reversed up above its oversold area. Therefore, as long as 120 holds as a support (former horizontal resistance now acting as a support and rising trend line in place since late 2014), targets on the upside are set at 126 (horizontal resistance) and 127.7 (theoretical target of the triangle). A third target is set at 132. Only a break below 120 would turn the outlook to bearish with a first alternative target at 118 (horizontal support) and 115.50 (December bottom) in extension.
Intraday Technical Strategy
AUD/USD Intraday: the upside prevails.
| Pivot |
0.7325 |
| Our preference |
Long positions above 0.7325 with targets @ 0.7405 & 0.7435 in extension. |
| Alternative scenario |
Below 0.7325 look for further downside with 0.73 & 0.7275 as targets. |
| Comment |
The RSI broke above a declining trend line. |
