Terror attacks in Belgium shook the market overnight with European equities trading lower and Gold strengthening. The market was quick to reverse these movements with the FTSE and DAX closing in the green 0.13% and 0.42% respectively. Gold rallied to $1260 off news of the attack, however retraced most of its gains in the hours following.
Despite the Australian dollar experiencing significant strength over the last few weeks, the RBA’s Glenn Stevens refrained from jawboning the dollar lower. In his speech at the ASIC Annual Forum, Steven’s noted the decline in commodity prices and the Australian economy’s adjustment to this shock. Steven’s also outlined the potential for shocks as China transitions its growth model and policy uncertainty from central bankers heightening volatility in financial markets. The AUD is currently trading at 0.7615, down from last weeks’ high of 0.7680.
Currency Updates:
EUR/USD Intraday: key resistance at 1.1245.
Pivot: 1.1245
Our preference: short positions below 1.1245 with targets @ 1.1165 & 1.1120 in extension.
Alternative scenario: above 1.1245 look for further upside with 1.1290 & 1.1345 as targets.
Comment: technically the RSI is below its neutrality area at 50. The pair remains within a bearish channel.
Supports and resistances:
1.1345 ***
1.1290 ***
1.1245 ***
1.1216 Last
1.1165 **
1.1120 ***
1.1055 ***
USD/JPY Intraday: further advance.
Pivot: 111.35
Our preference: long positions above 111.35 with targets @ 112.95 & 113.30 in extension.
Alternative scenario: below 111.35 look for further downside with 111.00 & 110.65 as targets.
Comment: technically the RSI is above its neutrality area at 50.
Supports and resistances:
113.80
113.30
112.95
112.23 Last
111.35
111.00
110.65
GBP/USD Intraday: under pressure.
Pivot: 1.4290
Our preference: short positions below 1.4290 with targets @ 1.4140 & 1.4050 in extension.
Alternative scenario: above 1.4290 look for further upside with 1.4360 & 1.4405 as targets.
Comment: as long as the resistance at 1.4290 is not surpassed, the risk of the break below 1.4140 remains high.
Supports and resistances:
1.4405 ***
1.4360 ***
1.4290 ***
1.4216 Last
1.4140 ***
1.4050 ***
1.3985 **
AUD/USD Intraday: rebound expected.
Pivot: 0.7565
Our preference: long positions above 0.7565 with targets @ 0.7680 & 0.7715 in extension.
Alternative scenario: below 0.7565 look for further downside with 0.7520 & 0.7475 as targets.
Comment: the RSI lacks downward momentum.
Supports and resistances:
0.7760
0.7715
0.7680
0.7615 Last
0.7565
0.7520
0.7475
SPI 200 (ASX) (M6) Intraday: consolidation.
Pivot: 5185
Our preference: short positions below 5185 with targets @ 5120 & 5085 in extension.
Alternative scenario: above 5185 look for further upside with 5214 & 5240 as targets.
Comment: as long as 5185 is resistance, likely decline to 5120.
Supports and resistances:
5240
5214
5185
5163 Last
5120
5085
5065
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