Stocks and Dollars

In the 17-nation using the European common currency, annual CPI for the year ending March exceeded analyst’s forecasts and the previous reading of 2.4%, the fastest in more than two years, as it leaped to 2.6%, thereby putting more pressure on policy makers to raise interest rate next week.

The FX Market is paused with the Irish stress test scheduled to be released today. Irish 10yr yields have risen to 10.70% in anticipation of the release which all but cuts them out of the capital markets. News from the ECB lending windows has reported that Irish banks are borrowing

Although the single currency continued to move higher and hit a high  of 0.8836 earlier this week, as price has retreated from there, suggesting minor consolidation would take place and below the Tenkan-Sen (now at 0.8745) would bring retracement towards minor support at 0.8654, however, renewed buying interest should emerge

Break of 132.96 resistance suggests that rebound from 122.40 has resumed and intraday bias is back on the upside for a test on 135.48 key resistance next. Break there will have medium term bullish implications and should bring stronger rally. On the downside, below 130.17 will turn bias back to

Intraday bias in EUR/JPY remains on the upside with 116.18 minor support intact. Current rise should now extend to 38.2% retracement of 139.21 to 105.42 at 118.33 first. Break will affirm the bullish reversal case and target 61.8% projection of 106.57 to 115.53 from 113.54 at 119.07 next. On the

With 0.8653 support intact, EUR/GBP’s rally is still expected to continue and above 0.8835 will target 0.8940 resistance first. On the downside, however, sustained break of 0.8653 will indicate that EUR/GBP has topped out in near term and will bring deeper pull back.

EUR/CHF continues to lose some upside momentum but after all, with 1.2887 minor support intact, rebound from 1.2432 is expected to continue higher through 1.3038 resistance. As noted before, rise from 1.2432 is viewed as the third leg of consolidation from 1.2401 and break of 1.3038 should target 1.3203 resistance

With 1.0203 support intact, further rise is still expected in AUD/USD, towards upper channel resistance at 1.0392 next. On the downside, below 1.0203 support will argue that a short term top is formed, possibly with mild bearish divergence condition in 4 hours MACD and bring pull back.