Calm before the Greek storm with Italian bond auction a distraction

<p>EUR/USD Range: 1.2472-1.2517 Support: 1.2400 Resistance: 1.2600 The single currency closed in New York towards the higher end of yesterday’s dull range as equity markets […]</p>

Range: 1.2472-1.2517
Support: 1.2400
Resistance: 1.2600

The single currency closed in New York towards the higher end of yesterday’s dull range as equity markets put in a solid performance but with no follow through above 1.2525 the Asia market continued to trade in the 50 pip range seen since Monday. It’s all about the Greek election this week-end but I’m not ruling out a short squeeze back to Monday’s Asia high of 1.2670 before the week-end but for today keep a close eye on Spanish 10 year yields as we push towards the 2011 high of 6.83% and the results of the Italian auction at 10am.

Range: 1.5544 – 1.5577
Support: 1.5400
Resistance: 1.5600

FX markets are trading in tight ranges ahead of the Greek election this week-end with cable trading the recent range the pound is taking its slight direction from EUR/GBP as cable trades towards the top end of the recent 1.5400-1.5600 range as of writing. EUR/GBP continues on its reversal lower with a US name selling being a dominant theme this week. Key levels are supports at 0.8000 and 0.7950 with resistance now seen at 0.8100.
Range: 0.9930-0.9970
Support: 98.50
Resistance: 1.0050

The RBA’s Stevens gave a speech in Brisbane overnight but the market didn’t react to what I consider to be some fairly strong comments as he noted the ‘ real exchange rate is pretty high here ‘ and more importantly ‘ RBA see’s pretty high level of Australian employment ‘ with the latter comment raising questions around the RBA cutting rates further following the 25 basis point cut last month. US retail sales are released at 1.30pm this afternoon with the consensus looking for a -0.1% following the rise of 0.1% last month.


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