- Bounce fails to happen with yen
- RBNZ rate hike causes slight dip
- Loonie catches up with other Commonwealth currencies
To repeat myself from yesterday: “Stocks trading heavy across exchanges and risk sentiment generally weak. All factors that contributed to a stronger yen”. Slowly but surely, we have witnessed bids around 102.20/30 being filled. If one were looking for a bounce, it surely failed to occur today. Support is now at 101.80/101.500 while resistance remains at 102.80 103.65.
The 142/143.80 range I was referring to yesterday was broken fairly quickly, with the EUR/USD dropping in the late afternoon and yen strengthening across the board. Support is now at 141.50/141.00 (percent DMA) while resistance is at 143.80.
Strong employment data had the pair flying and when we broke resistance at 0.9080, we rallied through 0.9100. Almost as quickly as we had reached 0.9100, we traded back to 0.9050 just as speedily. Support is at 0.8930 while resistance is at 0.9133 (a year high).
A quick dip to 0.8440 came ahead of the Reserve Bank of New Zealand's rate hike announcement but with the hawkish tone put forward, resistance at 0.8530 was quickly cleared and we have seen a high at 0.8606 today. Support is at 0.8525/35 and resistance is at 0.8670.
The loonie caught up with other Commonwealth currencies and the pair traded through support at 1.1070 and down to 1.1050. Support is at 1.1000 while resistance is at 1.1150.