Despite the negative news from China, financial markets took it in their stride. Official figures showed that the annual rate of growth in China’s economy slowed to 6.8% in the three months to December from 6.9% in the previous quarter, matching forecasts.
Positive risk sentiments helped the AUD recover from the last few days losses (0.6915) while USDCAD took advantage of a temporary OIL price rise, however falls from the multi year high have all but retraced. Downward pressure continues on Oil, as Brent hits a USD29.04/bbl low. Crude hit lows on Monday that had not been seen since 2003, on the prospect of Iranian output swelling a global glut. Weaker global financial conditions accompanied by plunging oil prices and a weakening Canadian Dollar will make the Bank of Canada’s interest rate decision a very close call.
Rising stock market sentiment has also pushed GOLD prices lower by $12 per ounce as the yellow metal was sought after, amidst the insecure environment of the past few weeks.
The biggest story of the day though is GBPUSD’s crash of 212 points from 1.4340 to 1.41280 after BoE governor indicated that the path to raising interest rates is still long away. Next target is at 1.4070.
Trading quote of the day: Amateurs want to be right. Professionals want to make money. Alan Greenspan
Currency Updates:
EUR/USD Intraday: the bias remains bullish.
Pivot: 1.0855
Our preference: long positions above 1.0855 with targets @ 1.0945 & 1.0965 in extension.
Alternative scenario: below 1.0855 look for further downside with 1.0835 & 1.08 as targets.
Comment: technically the RSI is above its neutrality area at 50.
Supports and resistances:
1.0985 ***
1.0965 **
1.0945 ***
1.0906 Last
1.0855 ***
1.0835 ***
1.08 ***
USD/JPY Intraday: the bias remains bullish.
Pivot: 117.2
Our preference: long positions above 117.2 with targets @ 118.05 & 118.35 in extension.
Alternative scenario: below 117.2 look for further downside with 116.85 & 116.5 as targets.
Comment: the RSI has just landed on its neutrality area at 50% and is turning up.
Supports and resistances:
118.75 ***
118.35 ***
118.05 ***
117.66 Last
117.2 ***
116.85 **
116.5 **
GBP/USD Intraday: under pressure.
Pivot: 1.423
Our preference: short positions below 1.423 with targets @ 1.4125 & 1.408 in extension.
Alternative scenario: above 1.423 look for further upside with 1.427 & 1.432 as targets.
Comment: as long as 1.423 is resistance, look for choppy price action with a bearish bias.
Supports and resistances:
1.432 ***
1.427 ***
1.423 ***
1.4173 Last
1.4125 *
1.408 *
1.4005 *
AUD/USD Intraday: bullish bias above 0.689.
Pivot: 0.689
Our preference: long positions above 0.689 with targets @ 0.696 & 0.7 in extension.
Alternative scenario: below 0.689 look for further downside with 0.685 & 0.6825 as targets.
Comment: a support base at 0.689 has formed and has allowed for a temporary stabilisation.
Supports and resistances:
0.7045 ***
0.7 ***
0.696 ***
0.6915 Last
0.689 ***
0.685 **
0.6825 ***
SPI 200 (ASX) (H6) Intraday: bullish bias above 4770.
Pivot: 4770
Our preference: long positions above 4770 with targets @ 4880 & 4910 in extension.
Alternative scenario: below 4770 look for further downside with 4700 & 4650 as targets.
Comment: the RSI is mixed with a bullish bias.
Supports and resistances:
4945
4910
4880
4841 Last
4770
4700
4650
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