|
EUR/USD: 1.3240 |
Outlook |
|
Res |
1.3270 |
1.3320 |
1.3430 |
Better bid after China move on RRR, but now awaiting the outcome of the EU meeting in Brussels and the Greek bailout package. |
|
Sup |
1.3180 |
1.3155 |
1.3055 |
Following the general weakness in the US Dollar on Monday, caused by Chinas weekend move to cut the RRR, there is not an awful lot to add.The market now awaits the outcome of the meeting in Brussels between the EU Finance Ministers, to thrash out a deal on Greece. Until we hear more there is likely to be little movement in the Euro, which currently sits off the days 1.3276 highs, after a choppy session, driven higher at the outset by the move from China.
European equity markets generally had a good day, in expectation of a positive outcome from the EU meeting (Dax +1.46%, CAC+0.96%) and with the US markets closed there is little to else to report at this time.
Having taken out the 1.3200 resistance early on, the Euro, now sits near the 1.3240 Fibo level and the near term oscillators are mixed. The hourly oscillators are overbought and turning lower, while for the moment, the 4 hourlies continue to point higher. It looks to me, that for the coming session we should use the current days range as an immediate guide without too much expectation of any directional move. If anything I suspect a slow drift lower might ensue as the hourly charts unwind, but I would not get too excited as we may just drift sideways.
There is little point in speculating until the outcome of the meeting is known, so the technicals are pretty much the same as yesterday. 1.3270 is the first barrier now ahead of the 9 Feb high at 1.3320. If seen, beyond here expect an acceleration to 1.3432 (50% of 1.4242/1.2623). Above this is the top of the downchannel which currently lies at 1.3655, which is unlikely to be seen today.
To the downside, 1.3180 now acts as minor support ahead of 1.3155 and 1.3055 short term Fibo support. These are unlikely to be seen unless there is a negative outcome from Brussels, at which point we would need t re-evaluate.
EU Consumer Confidence later today..
Meta Trader – AxiTrader
EUR/USD: 4 hour
|
AUD/USD: 1.0745 |
Outlook |
|
Res |
1.0775 |
1.0815 |
1.0845 |
Remains rangebound, but within the overall upchannel |
|
Sup |
1.0690 |
1.0630 |
1.0590 |
The Aud, having made an early spike high at 1.0815 in yesterdays session, has since retraced those gains to sit above session lows around 1.0750. The gap on the hourly charts is slowly being filled in and a move down to 1.0705 would accomplish that.
Overall the sideways consolidation remains intact and 1.0630/1.0844 remains the wide range. Within that 1.0680/1.0815 looks to contain it.
We should expect little action this morning unless there is some action from the EU. Otherwise, wait for the RBA minutes, which hopefully will give us a clue as to why they did not cut rates last time around.
Meta Trader – AxiTrader
AUD/USD: 1 hour
