Morning Dealing Room Technical Report

November 23, 2015

Market Comment

Australia

The S&P/ASX 200 index increased 0.26% or 13.578pts to 5256.14 (day range: 5272 – 5231) on Friday. The index is above its 20d MA (@ 5193) and above its 50d MA (@ 5168). 68% of the index constituents are above their 20D MA (vs 70% the previous session) and 70% of the shares are above their 50D MA (vs 71%).
Foreign Exchange
The US dollar was higher against all its major counterparts except for the AUD on Friday. There was no major economic news reported in the U.S. on Friday.

The Euro was under pressure against most of its major pairs. In Europe, euro zone consumer confidence index was up to -6 in November in first estimation from -7.6 in October. Economists anticipated a -7.5 reading. Germany PPI index fell 0.4% in Octobre, at the same pace than a month earlier. Consensus expected a 0.2% decline. UK budget deficit increased to £8.2B in October vs £7.1B a year earlier.

The Australian dollar pushed higher against all of its major pairs.

Last %1D %YTD
EUR/USD 1,0647 -0.81 -11.99
GBP/USD 1,5193 -0.64 -2.47
USD/JPY 122,87 0.01 2.67
EUR/CHF 1,0844 -0.24 -9.73
EUR/JPY 130,8200 -0.81 -9.57
EUR/GBP 0,7008 -0.17 -9.77
AUD/NZD 1,1020 0.57 5.16
AUD/JPY 88,9080 0.58 -9.05
EUR/AUD 1,4712 -1.40 -0.65
USD/CAD 1,3354 0.52 14.90
USD/CHF 1,0185 0.57 2.43
AUD/USD 0,7236 0.58 -11.49
NZD/USD 0,6567 0.02 -15.78

Currency Updates:

Medium Term Strategy: Forex Pair of the day

GBP/USD – under pressure

The pair has broken below the support at 1.5070 and is currently posting a pull back. Moreover, the daily RSI stands below its neutrality area. Further weakness is therefore likely with 1.4850 as a first target (horizontal support) and 1.4560 in extension (horizontal support and April low). A third target is set at 1.4230 (May 2010 bottom). Only a rebound above the resistance at 1.5660 (September top) would turn the outlook to bullish with a first alternative target set at 1.5940 (June top and previous overlap) and a second one set at 1.6190( 61.8% retracement of the July 2014 to April down leg).

Intraday Technical Strategy

AUD/USD Intraday: the upside prevails.

Pivot 0.7180
Our preference Long positions above 0.718 with targets @ 0.725 & 0.727 in extension.
Alternative scenario Below 0.718 look for further downside with 0.715 & 0.7115 as targets.
Comment The RSI is well directed.

 

 

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