Forex Flash: EUR/AUD downside held by ECB backstop – Westpac

FXstreet.com (Barcelona) - The return of genuine political concerns in the Eurozone should continue to chip away at the EUR/USD multiweek while the AUD/USD trades broad ranges, leaving EUR/AUD biased to further decline near term. “1.2350 is the next target for the EUR/AUD, but Novembers 1.2200 lows are probably just out of reach so long as Australia’s domestic outlook is soft enough to keep the RBA warning of further monetary easing. The ECBs bond market backstop plan also argues against substantial further EUR/AUD decline.” Notes Sean Callow, a Global FX Strategist at Westpac.

In addition, the initial support level is the 200-day MA at 1.2420, with 1.2345/50 next, around the Jan 2013 intra-day low and a Fibonacci retracement level. Near-term resistance looks to lie around EUR/AUD 1.2600, calculates Callow.

Mar 19, 2013

Forex Flash: USD and EUR against the CAD – TD Securities

Broader trend dynamics are still fairly week and short-term scenario favors range-trading rather than a bullish break out, according to TD Securities analysts. “We cannot exclude a push through 1.0265 near-term but we would still rather look to buy dips—to the low 1.02 area—than chase this market higher”, wrote analysts Shaun Osborne and Greg Moore, pointing to still positive broader trend but the USD may struggle to make fresh ground. “At the same time, we think the 1.0175/85 area is fast devel-oping into the key short-term support zone for USD/CAD”, they added.

Forex: EUR/USD at lows after Cyprus PM resignation

After briefly passing by the European session low at 1.2917 and extending the daily low to 1.2912, the market seems to be having the downside fairly limited as it shot up back to 1.2930. Despite trading lower on the day, the market remains pretty sidelined as it looks for more triggers via headlines coming from Cyprus. The latest report says the Cypriot Prime Minister has submitted his resignation, but significant move is being seen at the moment