Forex Flash: Gilts partake in range-bound trading – RBS

FXstreet.com (Barcelona) - Gilts remain range-bound after meeting the 119.93 target, but failing to reach the 120.52 wave projection and reversing some of the gains after forming an outside session. According to Technical Strategist Dmytro Bondar at RBS, “The price however found a decent support at 119.56 and 119.27, where several Fibonacci retracement coincide, which overall suggest the worst might be over and the price should recover to 120.52 and potentially 121.00/26 after sitting in a 119.27 – 120.00 range for a while.”

Moreover, the caveat would be a sustained break below 119.27. 20-day MA is also a good trailing support and pivot point.

May 3, 2013

Forex Flash: AUD/NZD overbought ahead of RBA next week – NAB

The AUD/NZD has come a long way since March and technical indicators such as the daily RSI suggest the currency is marginally ‘overbought’. What’s more, speculative net long positions are much larger in NZD relative to AUD. “This suggests the kiwi is relatively more vulnerable should any negative piece of global and/or New Zealand news trigger a flight back into ‘safe-haven’ assets and at least temporary aversion to the NZD.” writes the NAB Analyst Team.

Forex: EUR/USD pulls back and jumps to 1.3150

A first jump to 1.3147 gave way to a +100-pip plunge to 1.3034 low (around weekly opening price) as first reaction to the better than expected US NFP, including a revision higher of the March figure. Support at those lows, coupled with the Apr-30 low at 1.3055, made the EUR/USD pull back and encounter 1.3150. A volatile Friday ending with weekly gains after last week’s test of the 1.3000 territory and 1.2956 low.