EUR/USD
Range: 1.3090-1.3140
Support: 1.2980
Resistance: 1.3205
Market positioning dominates this pair with a move below 1.3000 yesterday followed with a short squeeze that saw a short market scramble to cover their risk back above 1.3100. This morning’s data release from Europe consists of HICP and the German ZEW index with the market looking for a slightly weaker reading. The market will no doubt react to the results this morning from the Greek, Spanish and EFSF auctions. Stops dominate this market with such orders noted below 1.2995 and above 1.3205.
GBP/USD
Range: 1.5865 – 1.5906
Support: 1.5800
Resistance: 1.6000
The queens currency still seems to be dominated by cross markets with EUR/USD trading in broader ranges with cable still seemingly in a 1.5800-1.6000 range. This morning we get the latest reading on inflation from the UK with the market looking for a slightly stronger reading of 3.5%.
AUD/USD
Range: 1.0305-1.0365
Support: 1.0290
Resistance: 1.0400
The lifestyle currency traded with a softer tone overnight after the RBA hinted that a rate cut or cuts were imminent although they are awaiting the release of the inflation report on April the 24th for confirmation that inflation risks have diminished. The market has been pricing in 25bpts cut in both May and June taking the cash rate to an accommodative 3.75%.