Subdued Asian session with Golden week with a raft of US data this week

<p>EUR/USD Range: 1.3228-1.3260 Support: 1.3100 Resistance: 1.3350 The single currency traded around the 1.3250 pivot level in a reduced liquidity session in Asia. We are […]</p>

EUR/USD
Range: 1.3228-1.3260
Support: 1.3100
Resistance: 1.3350

The single currency traded around the 1.3250 pivot level in a reduced liquidity session in Asia. We are trading towards the top end of last week’s range 1.3100-1.3270 with the focus this week likely to be more on the US data than Europe with crucial election next week-end in France and Greece. Today’s highlight for the EUR will come in the form of Spanish GDP data at 8am GMT this morning that is likely to show a further contraction to -0.4%.

GBP/USD
Range: 1.6257 – 1.6289
Support: 1.6150
Resistance: 1.6350

Sterling continues to trade higher despite last week’s poor GDP data technically pushing the UK back into recession. Data from the IMM showed leverage funds increased their longs from 70,000 to 87,000. The pound seems to be enjoying a certain safe haven status against the EUR and the market now eyes the June 2010 low of 0.8070.
AUD/USD
Range: 1.0436-1.0470
Support: 1.0350
Resistance: 1.0550

The AUD market awaits the crucial decision for the RBA this evening with a 25 basis point cut already priced in with some economists calling for a bolder 50 basis point cut from the central bank. Technically the market is eyeing the resistance level of 1.0470-1.0475 to break for a move to 1.0545-1.0550 with most investors looking for a bolder move from the RBA presenting an opportunity to ‘ buy the dip ‘ with the Federal reserve accommodative stance looking to remain in place for an extended period.

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