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FX Daily Majors
Today’s highlights: EURUSD spotlight remains on its 200-day average at 1.3635, below which can add weight to a large bearish “wedge” scenario.
Daily Technical Report
EUR/USD successfully tested the strongsupport at 1.3643 (see also the 200 day movingaverage) yesterday. However, a break of theinitial resistance at 1.3732 is needed to confirm ashort-term exhaustion of the selling pressures.
The Global Macro Pulse
Within the G10, AUDUSD has outperformed, opening weak, but rallying after the China PMI to 0.9266. USDJPY has pushed up to 101.65 and EURUSD is marginally lower at 1.3674.
UBS Morning Adviser
Core-headline inflation divergence apparent, but no policy response (yet) For many central banks targeting the elimination of spare capacity,
FI Eye-Opener: Something good
Government bond yields rose on Wednesday as the Fed minutes failed to turn the yields that crept higher. US 10-year yield rose to 2.54%. German counterparts rose slightly to 1.38%.
Daily Market Technicals
The move lower continued for EUR/USD overnight as the pair dipped towards the 200-DMA. Despite very O/S daily studies, bearish pressure dominates with bulls needing to
AUD/USD Analysis
Aussie was the main beneficiary of the surprisingly upbeat HSBC flash PMI reading out this morning. Aussie-dollar opened at $0.9251 and spent the early hours drifting lower, in part due to the broader US dollar strength.
EURUSD – RSI 40 break and l/t support break augur further weakness
Double-top neckline support at 1.3675 has yet to yield on a closing basis but RSI momentum augurs that a price break is on the horizon.
USDJPY – channel supports align at top end of target zone near 99 even
Prices have broken and cleared bear flag support and the last support level from the 3+ month range is under testing.
AUDUSD – sitting on critical .9203 support ; a-b-c zigzag targets .9160
There are a few scenarios brewing in Aussie but the gut reaction at first look is that the recent channel break is part of a bull flag correction unfolding as zigzag wave-(4).
EUR/USD Analysis
It’s been another muted session for the euro, after marking some rather hefty losses to a $1.3635 low during the US session last night. Euro-dollar opened at $1.3687 this morning but