Cable is getting underway in London trade right on what feels like important support just above 1.5200. If the bears can consolidate below there then we should see an increase in bearish momentum but if this support holds, watch for a sharp short-covering rally back towards 1.5360ish.
German GDP was worse than expected and the EUR has dipped across the board. I don’t think this market is really focussed on EZ economic data so it will soon be forgotten. I’m sticking with the buy-dip bias in EUR crosses.
You can click through here and read my full opening commentary on FX Street.
EUR has turned bullish on the crosses and Sovereign bids are expected in EUR/USD near 1.2900. USD/JPY has put in a bullish close above 102.00. EUR/GBP looks to have turned bullish in the short-term and there is support in the cable at 1.5200/15 (bullish EUR/USD by inference). AUD/USD and NZD/USD have support levels near by [...]
Kyle’s excellent daily technical analysis report is available in the members section. His highlights are the bullish close in USD/JPY and further bearishness in Cable and Gold. Let me know if you still don’t have a login and I’ll send you one.
This move is all about the unwinding of long-term safe-haven plays into currencies like the CHF and the AUD so don’t be getting all ‘beared-up’ on the EUR/USD, it’s not about that pair. EUR/CHF has started to accelerate higher, EUR/AUD has been bullish for some time as has EUR/JPY, and even EUR/GBP looks modestly well-supported. [...]
The NZD/USD support looks very strong near .8160 (series of 3 daily lows near this level). AUD/USD trendline support near .9870 should also provide initial support. Strong bids reported in AUD/USD near .9850. Overall the buy-USD momentum is still strong but if these levels hold they could be good for a quick 100 pip spike?
There is little in the way of technical resistance until 1.0000 and with momentum on the daily chart starting to build, I’d expect to see a test in the next week or so. My overall target is still at 1.10 as I think that EUR/CHF will trade back above 1.30 and EUR/USD will ease lower [...]
Just having a look through the short term charts and nothing is jumping out at me, although EUR/GBP does look like its broken out of an holding pattern and should now hold above .8470. With little or no momentum in any markets today, I wouldn’t be looking for more than a 50 pip move towards [...]
I think it’s safe to say that this particular cross does not attract a lot of attention but some of the bigger hedge funds seem to be playing it fairly seriously. A quick look at the charts suggest that the big levels to watch are .9400 and .9500 and a break above the latter could [...]