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Forex Flash: AUD/USD could incur range flip and break lower – ANZ

FXstreet.com (Barcelona) - The technical bias has been that AUD/USD formed a structural top in 2011, from which a prolonged, corrective consolidation pattern is still forming. According to Tom Riddell, Head of Global Markets Research at ANZ, “Persistent failure to sustain levels above 1.06 confirmed both range resistance and the broader corrective patterns. For the past ten months, AUD/USD has been contained within an effective 1.01-1.06 range.”

In addition and in more immediate terms, “The current break below 1.0100 could trigger a measured “range flip” and thus a potential retest of the early 2012 low (0.9580-0.9600). Such a range-flip slide will provide further credence to the formation of long-term consolidation patterns off the 2011 high (of 1.1080-85).” he adds.

Forex Flash: ECB is technically prepared to introduce negative deposit rates – BTMU

The euro has nudged higher against the US dollar climbing back above the 1.30-level driven by a weaker US dollar. The Euro upside potential in the near-term has been dampened by dovish comments from ECB Governing Council member Visco who told CNBC yesterday that the ECB is “technically prepared” to introduce negative deposit rates depending upon whether the economy needed further help. Bank of Italy Governor Visco also stated that he believes the measure would be “effective” while downplaying the importance of any unintended consequences, which could be worked on.
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Forex: EUR/GBP – capped at 0.8520 resistance

In the absence of drivers, EUR/GBP has moved attracted bids towards strong resistance offered by the 55 day ma and the 2013 downtrend at 0.8522/34.
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