The ASX moved 1% higher into the final week of trade in 2016 looking to close near the 5700 level. Optimism about 2017 and a fall AUD are both supporting the bull case for Australian shares.
The US Dow failed to get above 20000 however with the elusive target failing for a 3rd day. Perhaps it is just a matter of time however with a touch very likely in coming sessions.
The USD has been under some pressure in Asia so far with both the EUR/USD and GBP/USD making moves to the topside. USD/JPY has been steady however as EUR/JPY and GBP/JPY buying support.
The EUR/USD remains below the key 1.0500 level but a break above could see more profit taking before the longer term traders come back in. A test of parity in 2017 is consensus but in Forex world that might just be the kiss of death as consensus trades rarely work out as cleanly as the analysts forecast.
| EUR/USD |
12/28/2016 1:01 AM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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EUR/USD ST: under pressure. |
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Pivot: 1.0850
Our preference: short positions below 1.0850 with targets at 1.0280 & 1.0000 in extension.
Alternative scenario: above 1.0850 look for further upside with 1.1150 & 1.1365 as targets.
Comment: technically the RSI is below its neutrality area at 50.
Supports and resistances:
1.1365 **
1.1150 ***
1.0850 ***
1.0463 Last
1.0280 **
1.0000 **
0.9600 *** |
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