Monday 27th July 2015
Market Comment
Australia
The S&P/ASX 200 index was down 0.43% or 24.182pts to 5566.1 (day range: 5607.2 – 5548) on Friday. The index is above its 20d MA (@ 5561) and below its 50d MA (@ 5597). 53% of the index constituents are above their 20D MA (vs 60% the previous session) and 42% of the shares are above their 50D MA (vs 45%).
| Foreign Exchange |
| The US dollar was higher against its U.S. counterparts on Friday. On the economic data front, US home sales declined to 482K in June from 546K in May. (548K estimate). US Manufacturing PMI increased to 53.8 form 53.6 in the prior period in-line with estimates.
The Euro was higher against its major pairs. In Europe, euro zone PMI composite index fell to 53.7 in July in first estimation from 54.2 the month before and 54 expected.
The Australian dollar was under pressure against its major Pairs. |
|
Last |
%1D |
%YTD |
| EUR/USD |
1,0968 |
-0.15 |
-9.34 |
| GBP/USD |
1,5519 |
0.03 |
-0.37 |
| USD/JPY |
123,72 |
-0.16 |
3.35 |
| EUR/CHF |
1,0548 |
0.04 |
-12.20 |
| EUR/JPY |
135,7000 |
-0.26 |
-6.18 |
| EUR/GBP |
0,7068 |
-0.17 |
-9.00 |
| AUD/NZD |
1,1057 |
-0.67 |
5.51 |
| AUD/JPY |
90,0540 |
-1.21 |
-7.89 |
| EUR/AUD |
1,5069 |
0.92 |
1.76 |
| USD/CAD |
1,3060 |
0.20 |
12.40 |
| USD/CHF |
0,9617 |
0.18 |
-3.30 |
| AUD/USD |
0,7279 |
-1.05 |
-10.96 |
| NZD/USD |
0,6583 |
-0.36 |
-15.57 |
|
|
Currency Updates:
Medium Term Strategy: Forex Pair of the day
GBP/JPY – rebound
The pair has strongly rebounded above the support at 185 and remains on the upside. Further advance is likely as the moving averages and the daily RSI remain well directed. Next targets are set at 196.70 at first (horizontal resistance and Fibonacci projection of the previous up move) and at 201.60 in extension (same Fibonacci projection). A third target is set at 209 (horizontal resistance). Only a break below the horizontal support and overlap at 185 would turn the outlook to bearish with a first alternative target set at 179.40 (horizontal support) and a second one set at the horizontal support at 175.
Intraday Technical Strategy
AUD/USD Intraday: under pressure.
| Pivot |
0.7340 |
| Our preference |
Short positions below 0.734 with targets @ 0.723 & 0.72 in extension. |
| Alternative scenario |
Above 0.734 look for further upside with 0.738 & 0.7415 as targets. |
| Comment |
The RSI is mixed to bearish. |
