The Australian Dollar continues to unwind gains off the back of USD strengthening and falling commodity prices. US Federal Reserve policy makers overnight expressed hawkish opinions as to the need for further rate hikes this year. Fed President James Bullard stated there is a case to be made for a rate hike in April. This USD strengthening pressured commodity prices with oil falling and Iron ore futures posting their biggest fall since November, recording a loss of -5.4%. The AUD is currently trading at 0.7500 level having fallen from its recent high of 0.7680.
GOLD continues to be under pressure, sliding to 3 week lows, unwinding quick gains posted during the Belgium terror attacks. Gold hit its yearly high of $1284 earlier this month, rallying as equity markets tumbled amid global growth concerns and a downturn in commodities. The precious metal is currently trading at the $1220 level as we see profit-taking in the lead up to the Easter holiday period.
Oil has been climbing steadily, from its February lows, WTI has increased from $26/bbl to its high of $42.50/bbl last week. Since then, OIL momentum has begun to falter. EIA oil inventories data released yesterday posted a build of 9.4 million barrels last week, indicating the sixth consecutive week of record high inventory levels.
Currency Updates:
EUR/USD Intraday: under pressure.
Pivot: 1.1205
Our preference: short positions below 1.1205 with targets @ 1.1140 & 1.1120 in extension.
Alternative scenario: above 1.1205 look for further upside with 1.1233 & 1.1260 as targets.
Comment: technically the RSI is below its neutrality area at 50. The pair remains within a bearish channel.
Supports and resistances:
1.1260 ***
1.1233 ***
1.1205 ***
1.1179 Last
1.1140 **
1.1120 ***
1.1055 ***
USD/JPY Intraday: bullish bias above 112.10.
Pivot: 112.10
Our preference: long positions above 112.10 with targets @ 112.90 & 113.30 in extension.
Alternative scenario: below 112.10 look for further downside with 111.75 & 111.35 as targets.
Comment: a support base at 112.10 has formed and has allowed for a temporary stabilisation.
Supports and resistances:
113.80
113.30
112.90
112.41 Last
112.10
111.75
111.35
GBP/USD Intraday: the downside prevails.
Pivot: 1.4200
Our preference: short positions below 1.4200 with targets @ 1.4050 & 1.3985 in extension.
Alternative scenario: above 1.4200 look for further upside with 1.4290 & 1.4360 as targets.
Comment: as long as the resistance at 1.4200 is not surpassed, the risk of the break below 1.4050 remains high.
Supports and resistances:
1.4360 ***
1.4290 ***
1.4200 ***
1.4112 Last
1.4050 ***
1.3985 **
1.3910 ***
AUD/USD Intraday: towards 0.7475.
Pivot: 0.7570
Our preference: short positions below 0.7570 with targets @ 0.7475 & 0.7445 in extension.
Alternative scenario: above 0.7570 look for further upside with 0.7610 & 0.7650 as targets.
Comment: the RSI has broken down its 30 level.
Supports and resistances:
0.7650
0.7610
0.7570
0.7498 Last
0.7475
0.7445
0.7410
SPI 200 (ASX) (M6) Intraday: the downside prevails.
Pivot: 5150
Our preference: short positions below 5150 with targets @ 5065 & 5045 in extension.
Alternative scenario: above 5150 look for further upside with 5167 & 5183 as targets.
Comment: the RSI has broken down its 30 level. The index has broken below the lower boundary of a bearish channel.
Supports and resistances:
5183
5167
5150
5078 Last
5065
5045
5010
Important note: These technical and research reports are provided to easyMarkets® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easyMarkets® to you to engage in any trade. Hence, easyMarkets® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easyMarkets®. If you do not agree to this, you are strongly advised not to use these reports.
easyMarkets Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. easyMarkets recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning easyMarkets’ products.