Daily Insight: Traders Favor AUD Over NZD
Matt Simpson | Jul 21, 2014 03:36AM ET
- Lower liquidity today due to Japanese Bank Holiday
- HSBC upgrade Chine growth forecast to 7.5%, up 0.1%
- AUD/NZD traded higher form open early Asia as Traders favoured the AUD over NZD
- NZD immigration remains strong which poses upside risk for Kiwi Dollar
UP NEXT:
No red news to drive the markets today so we may be in for a quieter session, albeit further escalation surrounding Malaysian Flight MH17.
TECHNICAL ANALYSIS:
EUR/GBP D1: Seeking bearish setups on the daily timeframe
Please refer to previous analysis on EUR/GBP for a larger picture.
Friday closed with Shooting Star below the 8eMA and 0.7925 resistance level. As we remain light on News tonight this may take a few days to come into play, but the trend remains bearish as continues to print lower lows / highs.
If we break above Friday’s high then seek bearish setups below 0.7958, which is likely to provide more reliable resistance with the 21eMA, horizontal resistance and bearish trendline.
EUR/USD H1: Intraday spike warns of pending strength
The closely watched 1.50 level finally gave way last Friday, only to see it bounce aggressively back above to produce a Bullish Hammer. This spike low could be taken as the first clue to near-term strength, but going into today’s European open we can also see that price has broken above 1.354 resistance (now likely support) and intraday bullish momentum is increasing.
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This favours long setups on lower timeframes using the daily and weekly pivots as intraday targets.
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