THE TIPSTER
While resistance has remained at $1.4000 for euro-dollar, the level was breached this week. The rate dropped off slightly while investors waited for an announcement from the Federal Open Markets Committee with regards to an extension of quantitative easing (QE). But regardless the overall bullish trend remains strong. Cantor Index offers a daily spread of $1.3803.4–$1.3804.4.
Singapore is looking increasingly well placed to avoid the threat of a double dip recession. Intra-Asia trade continues to grow, so even if the US should stumble again, a degree of protection is on hand. This has seen investors increasingly shifting into the Singapore dollar since the start of the year. There did appear to be some technical resistance in dollar-Singapore dollar, pushing the pair below the psychological SG$1.3000 level. But as we have seen before, a change in the fundamentals may be all that it takes for more strength to emerge. The current IG Index price on dollar-Singapore dollar is SG$1.3074-SG$1.3082.
The 100-day moving average on euro-Swiss franc capped the sharp spike on euro strength last week at SFr1.3490. From here, it failed dramatically and the break below SFr1.3360-70 suggests more downside weakness is on the cards. ETX Capital is quoting SFr1.3285-SFr1.3288 for the rolling daily contract.
After a failed ‘death cross’ signal last week (50-day moving average crossing the 200-day moving average) and a failed attempt at a run at parity (a low of Ca$1.0062), Dollar-Canadian dollar has been attempting to recover. But rallies have been capped by the hourly 200-moving average, currently around Ca$1.0180. If it can break through the Ca$1.020 level it should jump to the Ca$1.0350 area in the short term. Look to close longs and go short again at this level. Spread Co offers a spread on dollar-Canadian dollar of Ca$1.0129–Ca$1.0133.