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- Technical support at 1.6580 with stops expected just below there;
- Busy day on the economic calendar with UK industrial production and the BOE inflation report;
- EUR/GBP has seen heavy demand from macros and model funds since the break above .8300.
I'm a glutton for punishment but I cannot resist the attempt to try and pick the bottom in AUD/NZD yet again.
- The iron ore price has been falling heavily yet the AUD is holding up well, usually a bullish sign.
- There are recent lows at 1.0640 which might attract profit takers;
- Tomorrow's RBNZ
Despite the big falls in iron ore prices, the AUD/USD is only falling very slowly which is somewhat surprising. Support levels in AUD/USD are seen at .8990/00. The Yen crosses are quiet ahead of the BOJ with plenty of market speculation now regarding the statement and a willingness perhaps by the Japanese
- Some very savvy prop traders have been building long positions in EUR/GBP over the last few weeks;
- Pair formed base at a major 61.8% retracement level near .8155;
- A break and hold above a potential neckline at .8350 would suggest a double-bottom pattern;
- Sentiment in the market is bullish EUR whilst
Two of the big prime brokers have been reporting macro-accounts selling AUD against the USD and especially against the EUR. There seems to be somewhat of a battle taking place near .9020, with undisclosed buyers soaking up all the supply. NAB business conditions and confidence are the only risk events on
There is some speculation that the BOJ statement might contain some surprises and this might explain the weight of USD/JPY buying which we've seen over the last week or so from big professional accounts. All Central Banks seem to be back in the race to call their currencies to the
- Bearish trend-line has been breached near .8308, next target is the 100-dma at .8328;
- Goldman Sachs reporting heavy demand from model funds;
- Citi report solid interest to buy cable near 1.6670.