Aud.chf & Eur.Aud Aud.Chf has been running with the bears for some time now and just took out a major low as it completed its fib swing. The pair is due for a retracement and does have the potential to come up to 0.9730 area and if resistance holds look for a continuation towards the south. The current fib target is at 0.9592. Proceed with caution as this pair is currently sitting at support levels.

We’ve all seen the Brussels summit come and go.  Ultimately passing the most recent Greek fiscal package, European leaders did what most of the market was thinking.  But, the Euro hasn’t moved much since the announcement of the second Greek bailout package and some are questioning the single currency’s ability to move higher – especially above the 1.3300 technical resistance figure.

Likely so – especially given the decline from this morning.  Following a price action top out at 1.5803, the pound sterling has plummeted to trade at 1.5665 in the New York morning.  Forming a consolidative base, the currency is likely to form a support base against the US dollar in the near term – especially with technical support levels at 1.5657 expected to keep at least some buying interest in the GBPUSD pair.

The Bank of England minutes from the February meeting were released on Wednesday and surprised the market because two members of the Committee (noted dove Adam Posen and David Miles) had voted to extend asset purchases by GBP75bn, more than the GBP50bn that the consensus wanted. This caused an immediate knee-jerk reaction in the pound, which dropped from 1.58 to below 1.57 vs. the US dollar, while EURGBP punched through resistance at 0.84 and is now testing 0.8450.