Blackwell Global | Dec 16, 2013 05:11AM ET
Current resistance levels can be found at 0.9033, 0.9136 and 0.9206; with major resistance found at 0.9033 as the AUD looks likely to sink further. Support levels can be found at 0.8925, 0.8869 and 0.8800 with 0.8800 likely to be the hard floor to crack in order for any further movements south on the charts.The RSI still has room to move lower and certainly, traders will look to push on support levels.
Current technical movements show that resistance can be found at 1.3785 and 1.3830; with major resistance at 1.3830 with markets looking to break through if given the signal by the ECB. Support levels can be found at 1.3689, 1.3648 and 1.3590. These look unlikely to be tested unless the current bullish trend line is broken and a breakout occurs – RSI movements suggest that buying pressure is still there and that it's unlikely.
The Pound started to range after last week’s light economic data output. However, sentiment remained overall positive for the Pound versus its major partners. The week as a whole though saw a breakthrough of the current bullish trend line and the pound looked to range again as it searches for direction.
The markets are now awaiting the crucial end of year data on CPI which showcases the so far stellar performance of the Pound. Overall though, it’s likely that markets will react positively to a decrease in inflation, and the prospect of rates being increased in the near term.
Current market technicals show resistance at 1.6440 and 1.6511; with major resistance at 1.6440 as the Pound looked to push through before falling back last week. Support levels can be found at 1.6256, 1.6152 and 1.6055; with major support found at 1.6256. Overall though, the RSI shows strong buying pressure for the Pound, and it’s likely there will be no dramatic falls in the short-medium term.
Market technicals are relatively unchanged compared to last week and that resistance can be found at 0.8369 and 0.8479; with major resistance at 0.8369 where the market has tested the level twice in the last month. Current support levels can be found at 0.8211, 0.8151 and 0.8067. Overall though, current market sentiment is bullish, however, with a weak AUD weighing on the Kiwi, it is likely we could see more consolidation and ranging in the short term.
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