Morning Dealing Room Technical Report

September 15, 2015

Market Comment

Australia

The S&P/ASX 200 index rose 0.5% or 25.386pts to 5096.47 (day range: 5132.4 – 5068.9) on Monday. The index is below its 20d MA (@ 5155) and below its 50d MA (@ 5402). 36% of the index constituents are above their 20D MA (vs 29% the previous session) and 26% of the shares are above their 50D MA (vs 24%).

Foreign Exchange

The US dollar was mixed against its major counterparts on Monday. There was no economic news reported in the U.S. on Monday.

The Euro was under pressure against its major counterparts. In Europe, the eurozone industrial production in July was 0.6% higher than in June, and 1.9% up compared with the same month a year earlier, the strongest performance since February.

The Australian dollar was higher against all its major pairs.

Last %1D %YTD
EUR/USD 1,1322 -0.14 -6.41
GBP/USD 1,5425 -0.03 -0.98
USD/JPY 120,18 -0.34 0.41
EUR/CHF 1,0962 -0.26 -8.75
EUR/JPY 136,0700 -0.46 -5.94
EUR/GBP 0,7340 -0.13 -5.49
AUD/NZD 1,1274 0.41 7.56
AUD/JPY 85,7660 0.32 -12.27
EUR/AUD 1,5865 -0.79 7.14
USD/CAD 1,3257 -0.04 14.08
USD/CHF 0,9682 -0.12 -2.62
AUD/USD 0,7137 0.63 -12.70
NZD/USD 0,6330 0.19 -18.81

Currency Updates:

Medium Term Strategy: Forex Pair of the day

EUR/USD – trading in a bullish channel
The pair is trading close to the lower boundary of a bullish channel in place since March. In addition, the daily RSI has broken above a declining trend line in place since May. Then, as long as 1.0810 holds as a strong support, further advance is likely with 1.1730 as a first target (horizontal resistance) and 1.2050 in extension (overlap, July 2012 bottom). A third target is set at 1.2250 (strong 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: further upside.
Pivot 0.7070
Our preference Long positions above 0.707 with targets @ 0.719 & 0.7225 in extension.
Alternative scenario Below 0.707 look for further downside with 0.703 & 0.7 as targets.
Comment The immediate trend remains up and the momentum is strong.

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