Forex: USD/CAD hovering over 1.0200

FXstreet.com (Barcelona) - The USD rally has resumed its march, briefly interrupted on Monday, lifting the cross above the key mark at 1.0200 on Wednesday.

Ahead in the day, March’s Manufacturing Shipments are due in the Canadian economy, with consensus calling for an increase of 1.0% on a monthly basis. In the US, Producer Prices and Industrial Production will be in the limelight.

At the moment, the cross is up 0.14% at 1.0195 with the next resistance at 1.0214 (high Apr.26) followed by 1.0229 (76.4% of Apr-May fall) and finally 1.0258 (high Apr.25).
On the flip side, a breakdown of 1.0179 (hourly low May 15) would aim for 1.0152 (MA21d) and then 1.0099 (MA10d).

May 15, 2013

European equity markets climb despite weak GDP in EMU

The European stock markets have finally begun to pare their losses from earlier in the week, a feat made more difficult given the recent tranche of weak economic data permeating the euro bloc. In the EMU, Gross Domestic Product s.a. (YoY) fell at a rate of -1.0% in Q1, exceeding expectations of -0.9%. Moreover, Gross Domestic Product n.s.a. (QoQ) has yielded a figure of -0.2%, vs. a projection of -0.1%.

Forex Flash: Bunds rupture support, downside extended – RBS

Bunds have broken the 144.43 support and reached the first target of 144.24 from the head and shoulders pattern. According to Dmytro Bondar, a Technical Markets Strategist at RBS, “After an initial reaction form the level, further downside to the main pattern’s target of 143.56 would be expected. There is also a strong support level on the way at 144.00 – a level of polarity change and March gap. Oscillators are quite neutral, but the 20/5/5/3 slow stochastic nears oversold region. A sustained recovery above 20-day MA (currently at 146.10) cancels the view.”