EUR/USD
Despite the Euro making a new 15 month low at 1.2958, on fears of a credit
crunch within the EU, we are now back at the 1.2945 pivot mentioned
yesterday in very thin year end position-squaring trade.
The divergence on the 4 hourly charts suggests that we are unlikely to revisit
the downside for now, but should we do so, I would expect 1.2825 support to
hold.
The indicators are oversold and look to be pointing a bit higher. Immediate
resistance is at 1.2960. Should we break this then expect a move towards
1.3050.
Given that it is year-end, corporate flows are likely to dominate. Equities are
finishing on a positive note and it would appear that the Euro should stabilise
today given that there is no economic data to talk of.
AUD/USD
The Asia low at 1.0043 held as the AUD rallied in line with stronger equity
markets to remain well within the recent range. The 1.0050/1.0200 guide has
held well over the last couple of days and it appears that this will remain the
case going into the weekend.
Corporate book squaring is likely to dominate trade today in what will be a thin session.
Have a happy and safe new year from all at AxiTrader
