As expected the RBNZ left the OCR unchanged but the accompanying statement stated that they are watching for increased inflation pressure and expect growth to rise to 2.5% and 3% over the next two years and suggested rates could be on hold until 2014. The Kiwi ran higher to break key 0.8275 trend resistance on its way to a high - so far - of 0.8293. The next hurdle sits at 0.8308, 7th Nov high and possibly on to the 0.8356 28th…Continue
Technically, the Euro has now broken the major resistance trendline that we have been watching and headed towards the next resistance at 1.3083 (22 Oct high). A break of this would suggest an acceleration on towards the 17 Oct high at 1.3139 although the growing bearish divergence on the 4 hour charts is warning us of a possible reversal and thus to bring up trailing stops on long positions. Above 1.3140, although doubtful at this point, a continuation of the rally…Continue
The Euro looks like it may be trying to carve out a Head Shoulder top, but really needs to stay under 1.3100 to remain valid. 1.3090 is 23.6% of 1.2623/1.3234 and currently acts as short term resistance.If it works, 1.2925 would be the target, so not a bad risk reward!…Continue
The Aud made good gains following the China GDP, trading almost to the point where trendline rsistance is to be seen reaching 1.0449 before failing and dropping back to resistance-turned-support at 1.0370 area. The hourlies are pointing to further near term downside moves and it looks as though the recent range will continue to dominate.
We may again see tests of…Continue