Currency Updates:
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Forex pair of the day |
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GBP/USD – within a bullish channel |
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The pair has validated a bullish flag and is facing a pull back on the lower boundary of a MT bullish channel. Moreover, the moving averages remain well directed. Therefore, as long as 1.6450 holds as a support (previous overlap), further advance is likely with 1.7040 at first (August 2009 top and strong overlap) and 1.74 in extension (horizontal resistance and overlap). A third target is set at 1.79 (horizontal resistance). Only a break below 1.6450 will turn the outlook to bearish. In this case, a first alternative target is set at 1.62 and a second one at 1.5870 (November 2013 bottom). |
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Market Comment |
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Australia |
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The S&P/ASX 200 index dropped 0.49% or 26.927pts to 5492.55 (day range: 5525.1 – 5492.5) on Friday. The index is above its 20d MA (@ 5477) and above its 50d MA (@ 5442). 56% of the index constituents are above their 20D MA (vs 67% the previous session) and 58% of the shares are above their 50D MA (vs 60%). Australia private sector credit rose 0.5% MoM in April vs +0.4% in Marcvh, according to the Reserve Bank of Australia. |
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