Morning Dealing Room Technical Report

November 12, 2015

Market Comment

Australia

The S&P/ASX 200 index rose 0.46% or 23.391pts to 5122.62 (day range: 5130.9 – 5092.6) on Wednesday. The index is below its 20d MA (@ 5240) and below its 50d MA (@ 5161). 40% of the index constituents are above their 20D MA (vs 38% the previous session) and 60% of the shares are above their 50D MA (vs 58%).
Foreign Exchange
The US dollar was under pressure against all of its major counterparts on Wednesday. On the economic data front, MBA US mortgage applications fell 1.3% last week from a decline of 0.8% the week before.

The Euro was mixed against its major pairs. In Europe, on the economic data front, UK unemployment unexpectedly fell to 5.3% : its lowest level since 2008 as employment rose 177k in September vs +120k expected.

The Australian dollar was higher against all its major pairs except for the NZD and GBP.

Last %1D %YTD
EUR/USD 1,0738 0.13 -11.24
GBP/USD 1,5212 0.62 -2.34
USD/JPY 122,84 -0.26 2.63
EUR/CHF 1,0789 -0.03 -10.19
EUR/JPY 131,9000 -0.13 -8.82
EUR/GBP 0,7059 -0.48 -9.11
AUD/NZD 1,0766 -0.04 2.72
AUD/JPY 86,7330 0.17 -11.28
EUR/AUD 1,5208 -0.27 2.71
USD/CAD 1,3265 -0.08 14.14
USD/CHF 1,0047 -0.13 1.03
AUD/USD 0,7061 0.41 -13.63
NZD/USD 0,6558 0.44 -15.89

Currency Updates:

Medium Term Strategy: Forex Pair of the day

AUD/USD – under pressure

The pair has posted a rebound but stands below the strong horizontal resistance at 0.7530. Moreover, the daily RSI has reversed down below its overbought area. As a consequence, further weakness is expected with a first target at 0.69 (September bottom) and a second one set at 0.6650. A third target is set at 0.6350 (horizontal support). Only a rebound above the strong horizontal resistance at 0.7530 would turn the outlook to bullish with a first alternative target set at the previous overlap at 0.7805 and a second one set at May top at 0.8165.

 

Intraday Technical Strategy

AUD/USD Intraday: the upside prevails.

Pivot 0.7015
Our preference Long positions above 0.7015 with targets @ 0.709 & 0.712 in extension.
Alternative scenario Below 0.7015 look for further downside with 0.6975 & 0.6935 as targets.
Comment The RSI is supported by a rising trend line.

 

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