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Forex Flash: Bearish gap closes as Bunds test resistance – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices tested the 142.95 resistance, being the 50% retracement from the July 2012 impulse wave on a continuation chart, which closed the 142.50 bearish gap from 28 January 2013, suggesting more recovery towards the 143.70 mark is likely.”

In addition, “the 10/3/3/3 slow stochastic is turning positive from the oversold region, confirming the view. The primary stipulation would be a sustained break below 141.93. Overall however, favor buying dips near the 142.18/25 support region to 142.90 onto 143.30 and 143.70.” Bondar recommends.

Forex: USD/CHF closer to highs after German factory orders

Strong bids in the EUR/CHF market sent the USD/CHF higher by more than 50 pips, back above the 0.9100 mark and reaching as high as 0.9144. The following corrective movement is being held above 0.9120. The USD/CHF is approaching its highs again, currently at 0.9130 (+0.50%).
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Forex Flash: KRW remains strong play vs. JPY – Westpac

According to the Westpac Strategy Team, “From the perspective of the yen, it seems likely that in the near term that currencies such as KRW will maintain a fairly strong positive correlation with JPY (i.e. upside in USD/JPY will continue to bias USD/KRW higher) – rhetoric around JPY/ KRW weakness from Korean officials still appears to be quite strong.”
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