FOREX Trading Australia – Foreign Exchnge Market Summary
Dollar
- Dollar continued on its slight recovery path with the market eyeing the Fed’s meeting tomorrow. While a rate hike is expected and priced in by one and all, the accompanying statement is the main focus. Dollar is also supported by this
Holiday week with the market not looking to push pairs in a decisive direction. Earlier, the Consumer Confidence survey showed an unexpected decline with the rise in oil prices the likely catalyst.
Euro
- The Euro has gone below 1.33 on profit taking but good buying interest has come up on dips towards 1.3250 for now. With Euro at such high levels and the likelihood of the
U.S. Holiday weekend.
Yen
- The Yen continues to hover within its recent range and for now any Dollar foray above 105 should attract selling interest with very strong resistance around 105.50. Japanese markets are closed today. On Friday, Oil prices reached a new record high in Asian trading but managed to ease slightly on profit taking.
Pound
- The Pound moved on familiar lines with the 1.9110-30 region acting as a strong support base for 3 weeks now. The unexpected rise in mortgage approvals helped it rally back above 1.92, the result was the highest since August last year. But overall the Housing market continues on its path of slight decline.
Australian Dollar
- The Australian dollar finished strongly above 0.79 but the markets generosity to keep it above that level might run out, if it fails to break above 0.80 soon. The market is quite long and could see some profit taking with 0.7845-60 the crucial support zone. Higher commodity prices and mixed
U.S.
Economic Data Released
|
GMT |
Release |
Region |
Previous |
Actual |
Outcome |
|
|
|
February PPI m/m |
|
0.8% |
0.4% |
Slightly higher than expected on spike in oil prices |
|
|
|
|
|
94.1 |
92.9 |
Lower than consensus as consumers remain wary of outlook after spike in oil prices |
|
Upcoming Economic Releases
|
GMT |
Release |
Region |
Previous |
Forecast |
Expectation |
|
|
4Q Industrial Production |
|
-2.9% |
3.6% |
Likely to increase from last Q but industrial sector has slowed down. |
|
|
January Wholesale Sales |
|
1.1% |
0.5% |
Should stay steady around recent levels. |
FOREX Technical Analysis
EUR/USD – Friday’s low was 1.3264 and high was 1.3384.
The pair closed at 1.3323.
Profit taking has sent the pair below 1.33 but good buying interest has come on dips down to 1.3250. A break below that mark could accelerate losses with the next support zone at 1.3190-1.3205. On the upside the 1.33 region hold mixed interest but any foray above 1.34 could attract selling interest.
Key resistance is seen at 1.3395 followed by 1.3485 while support starts at 1.3250 followed by 1.3185.
USD/JPY – Friday’s low was 104.53 and high was 105.05.
The pair closed at 104.72.
The Yen continues to be held off from the 103.50-75 zone with strong Dollar bids in that region. Since sentiment is against the Greenback any foray above 105 should continue to attract selling interest. 105.50 holds very stiff resistance. A decisive break below 103.50 could accelerate gains for the Yen.
Key Resistance is seen at 104.95 followed by 105.55 while support starts at 103.75 followed by 103.20.
GBP/USD – Friday’s low was 1.9123 and high was 1.9248.
The pair closed at 1.9216.
The Pound has rallied well but could see some profit selling on moves above 1.93; 1.9345-60 is the strong resistance zone to breach. But support is solid around 1.9150 while any dips below 1.91 should bring in strong buying interest.
Key Resistance is seen at 1.9345 followed by 1.9395 while support starts at 1.9155 followed by 1.9105.
Australian Dollar
AUD/USD – Friday’s low was 0.7885 and high was 0.7949.
The pair closed at 0.7947.
The Aussie has solid support above 0.7850 with good buying interest on any move towards 0.7875. A break below 0.7850 brings into focus the strong support zone of 0.7810-25. On the upside 0.7950 continues to hold mild resistance while option barriers are laced till 0.80 which continues to be the very stiff resistance mark.
Key Resistance is seen at 0.7975 followed by 0.8015 while support starts at 0.7855 followed by 0.7805.
Kunal ‘Kris’ Sharma
Forex Analyst
Australian Financial Services License 246566
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