With G7 meetings later today and tomorrow, we are seeing some profit taking in risk sensitive instruments. GBP/JPY bounced off of 100 WMA near 143.30 and rallied 500 pips, retracing three quarters of the decline in May, before turning lower. AUD/USD is also off a cent after testing 0.77 earlier this week.
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Swiss franc sold across the board today
Swiss franc weakened across the board today. USD/CHF used 100 DMA as a springboard for the move that took it to the highest level since January. EUR/CHF is trading at the highest levels since SNB discontinued minimum exchange rate at 1.20 in 2015. GBP/CHF is up 1000 pip from the low. A round of profit-taking would not come as a surprise at these levels.
Kiwi pulls back ahead of the FOMC
New Zealand quarterly Employment Change came in as expected, at 0.8%. Unemployment Rate rose to 5.2% on the back of higher Participation Rate (70.5%). Labour Cost Index slightly disappointed at 0.4%.
Kiwi added nearly five cents from the low of 0.6860 in late December and pulled back nearly a full cent after the release of otherwise solid labour market data. Profit-taking after yesterday's surge to 0.7350 and ahead of the FOMC might have been a bigger factor.
Kiwi added nearly five cents from the low of 0.6860 in late December and pulled back nearly a full cent after the release of otherwise solid labour market data. Profit-taking after yesterday's surge to 0.7350 and ahead of the FOMC might have been a bigger factor.
Cable stages a reversal
Cable staged an impressive reversal yesterday, sadly after the killing of a British MP, a supporter of the Remain campaign. A big part of it was probably just profit taking in GBP/JPY after stops below 150 were cleared all the way to 145.
Cable posted a hammer-like reversal on the daily chart and followed through overnight. 1.43 - 1.4350 is the next stronger support (May low, 100 DMA, broken February - April trendline) and then 1.4450 - 1.45 (includes 50 DMA). 1.42 is the initial support.
Cable posted a hammer-like reversal on the daily chart and followed through overnight. 1.43 - 1.4350 is the next stronger support (May low, 100 DMA, broken February - April trendline) and then 1.4450 - 1.45 (includes 50 DMA). 1.42 is the initial support.
Aussie keeps rising
Aussie has had a great bull run. It has been closing in the green for seven consecutive days and is currently up 20 pips today. September high (~0.7280) is the immediate resistance and, if it breaks, stoploss driven orderflow may send the pair above 0.73. However, it is Friday and there's risk that the pair pulls back from there on pre-weekend profit taking.
Support:
0.7200 - 0.7235 (Wednesday High, Daily Pivot Point, Monthly Resistance 1, H1 50 SMA, 00's)
Resistance:
0.7280 - 0.7300 (September …
Support:
0.7200 - 0.7235 (Wednesday High, Daily Pivot Point, Monthly Resistance 1, H1 50 SMA, 00's)
Resistance:
0.7280 - 0.7300 (September …