THE TIPSTER
AFTER hitting twenty month lows last week at £0.8067 euro-sterling has bounced nearly 300 pips to £0.8335. It broke the 20-day simple moving average on Monday along with a four-month resistance line yesterday at £0.8280. Look for support around this level, which could thwart further euro gains. Resistance should come in around £0.8385, the June high. Spread Co offers a spread on euro-sterling of £0.8338-£0.8340.
Cable has enjoyed a tremendous rally from lows reached prior to the Budget. But for the second time since Friday though, it has hit the $1.5230 area and met strong resistance. For example, yesterday cable dropped 50 pips in about thirty minutes. Support should come in around $1.5110, so look to trade the edges of this range. Spread Co offers a spread on sterling-dollar of $1.5181-$1.5184.
The Aussie dollar moved higher yesterday even after the central bank left interest rates on hold. This created a bullish engulfing candle stick pattern. This could lead to further strength in the days and weeks ahead. Capital Spreads quotes $0.8545-$0.8548 for Aussie dollar-US dollar.
Euro-US dollar has pushed towards its highest levels in weeks, however fears over European bank stress tests are likely to cap any upside with resistance around the $1.2700 area. Look to sell on rallies CMC Markets’ spread is $1.2600-$1.2602.