AUD/USD: 0.7240
EUR/USD: 1.1050
Stocks were generally steady today after the recent strong rally in pausing for breath, ahead of Interest Rate Decisions later in the week from the Fed and the BOJ (as well as the RBNZ/Rijksbank), while the dollar lost a little ground in the wake of some soft U.S. housing data. The first half of the coming session may be quiet , with no data at all to come from the EU, but it will liven up once the US get in with the release of the US Durable Goods Orders, Case Schiller House Price Index, Consumer Confidence, Richmond Fed Mfg Index, Markit Flash Services/ Composite PMIs.
AudUsd was steady today hugged the 200 HMA for much of Monday and it would seem to be that we can expect more of the same today as traders sit on the sidelines ahead of the event risks on Wednesday (Australian CPI/FOMC Meeting), leaving today’s outlook pretty much unchanged.
To the topside, the initial targets will be at 0.7261/68 (200 HMA/Session high), above which would then open the way to Friday’s high at 0.7297. Above 0.7300 seems unlikely today in the absence of any data, but if wrong look for a run up towards 0.7310 (minor) and possibly to the 100 DMA at 0.7330, the descending trend resistance at 0.7350 and to 15 Oct high at 0.7361.
To the downside, the 100 HMA is currently at 0.7230, below which, the session low sits at 0.7206. Further support will be seen close-by at 0.7200 but a break of which would then head towards 0.7160 (50 % pivot of 0.6936/0.7381) and possibly to 0.7106 (61.8%) and to 0.7040 (76.4%).
Don’t expect too much today, possibly confined to a similar range to yesterday, but possibly with a slightly higher bias as seen in the positive momentum shown in the 4 hour charts.
Jim LanglandsFX Charts
