Friday 24th July 2015
Market Comment
Australia
The S&P/ASX 200 index was down 0.43% or 24.283pts to 5590.29 (day range: 5617.5 – 5586.2) on Thursday. The index is above its 20d MA (@ 5560) and below its 50d MA (@ 5599). 60% of the index constituents are above their 20D MA (vs 61% the previous session) and 45% of the shares are above their 50D MA (unchanged).
| Foreign Exchange |
| The US dollar was mixed against its U.S. counterparts on Thursday. On the economic data front, Initial jobless claims for the week ending July 18 lunged to 255K, the lowest in 4 decades. US continuing jobless claims lowered to 2207K for the week ending July 11 from a revised 2216K in the week prior.
The Euro was higher against its major pairs. In Europe, euro zone consumer confidence index fell to -7.1 in July in first estimation from -5.6 the month before. Economists anticipated -5.8. UK retail sales decreased 0.2% in June after a 0.3% rise in May (revised from +0.2%). Consensus expected +0.4%.
The Australian dollar was under pressure against its major Pairs. |
|
Last |
%1D |
%YTD |
| EUR/USD |
1,0992 |
0.58 |
-9.14 |
| GBP/USD |
1,5517 |
-0.61 |
-0.39 |
| USD/JPY |
123,83 |
-0.11 |
3.45 |
| EUR/CHF |
1,0547 |
0.55 |
-12.20 |
| EUR/JPY |
136,1200 |
0.47 |
-5.91 |
| EUR/GBP |
0,7084 |
1.20 |
-8.78 |
| AUD/NZD |
1,1125 |
-0.76 |
6.15 |
| AUD/JPY |
91,0820 |
-0.39 |
-6.83 |
| EUR/AUD |
1,4945 |
0.88 |
0.93 |
| USD/CAD |
1,3036 |
0.03 |
12.18 |
| USD/CHF |
0,9595 |
-0.04 |
-3.50 |
| AUD/USD |
0,7355 |
-0.30 |
-10.03 |
| NZD/USD |
0,6611 |
0.59 |
-15.21 |
|
|
Currency Updates:
Medium Term Strategy: Forex Pair of the day
EUR/USD – rebound
The pair is rebounding above the strong horizontal support at 1.0810 as the daily RSI lacks downward momentum. Then, as long as 1.0810 holds as a support, further advance is likely with 1.1215 as a first target (July 10th top) and 1.15 in extension (previous top). A third target is set at 1.1730 (horizontal resistance). Only a break below 1.081 would turn the outlook to bearish with a first alternative target set at 1.0450 (March low) and 1.02 (horizontal support and overlap).
Intraday Technical Strategy
AUD/USD Intraday: choppy.
| Pivot |
0.7345 |
| Our preference |
Long positions above 0.7345 with targets @ 0.742 & 0.745 in extension. |
| Alternative scenario |
Below 0.7345 look for further downside with 0.7325 & 0.729 as targets. |
| Comment |
The RSI lacks downward momentum. |
