The GBP/USD pair initially fell during the week, but turned back around
to form a positive candle. We have broken out and up to the 1.65 level,
but that area offered enough resistance to push the market back down.
With that, we feel that the market will eventually go to the 1.70
handle, an area that should be significant resistance. Going forward, we
do think that the market will break above there, and we believe that
the 1.65 level is the “floor” in this market. We are “buy only.”
EUR/USD fell during a large portion of the week, but found enough
support below in order to bounce and form a hammer. We believe this
hammer is simply a sign that the market wants to go higher, but we
recognize that the 1.40 level is crucial at this point. Mario Draghi has
essentially stated that the 1.40 level is the “line in the sand” at the
moment, so as a result we think that every time this market comes near
there we will see a bit of selling pressure.
Australia Building Permits Dip 3.5% In March
The total number of building
permits issued in Australia was down a seasonally adjusted 3.5 percent
on month in March, the Australian Bureau of statistics said on Monday,
standing at 15,958.
That missed forecasts for a gain of 2.0 percent following the 5.0 percent decline in February.
a yearly basis, permits climbed 20.0 percent - also shy of forecasts
for 31.2 percent and slowing from 23.2 percent in the previous month.
for private sector houses eased 0.7 percent on month and climbed 19.4
percent on year to 9,224, while consents for private sector dwellings
excluding houses dropped 7.0 percent on month but gained 21.6 percent on
year to 6,528.
The value of total building approved fell a seasonally adjusted 11.0 percent in March and has fallen for three months.
value of residential building fell 3.2 percent following a rise of 0.2
percent in the previous month. The value of non-residential building
fell 23.3 percent and has fallen for three months.