Forex Charts

AUDNZD – breaking 1.0490 supports a continuation towards 1.0330/1.01

AUDNZD spent the year correcting the 2012/13 decline with a large wave-(4) consolidation.

The thrust out of the triangle was short-lived and failed well below our minimum 1.27 target.

With an A-B-C decline complete the path of least resistance is now higher for $JPY.

In terms of data releases we have a quiet day ahead of us.

The German IFO expectations are due for release and we look for another positive surprise.

At the meeting tonight, we expect the FOMC to remove considerable time from the statement,

In the euro area we expect higher PMI figures,

Today focus will be on US data with the release of industrial production.

Prices obliged our call for a correction higher to 119.15/60 yesterday and

To recap, the falling wedge from October fits well as a wave-5 and that means Euro is starting a corrective countertrend rally.

LTRO repayments are due around noon. Banks took EUR130bn yesterday on the second TLTRO but

Prices clearly broke into and tested the low end of the congestion zone near 117.25.