Australia: RBA Commodity Index SDR falls 6.5% in April

Commerzbank analysts noted that the EUR/USD has eroded the 2013 resistance line: “This has introduced scope to retest the key resistance which remains the 1.3200/25 recent high and 50% retracement”, wrote analyst Karen Jones, expecting it to hold the topside. “Further upside probes remain viable while we continue to hold above the 1.3030 short term uptrend. The rally yesterday felt quite directional and the intraday charts are giving conflicting signals - .should 1.3225 be eroded this would introduce scope to 1.3340, the 61.8% retracement of the move seen this year”, she continued, adding that a slide back below 1.3030 is needed to alleviate immediate upside pressure for a slide to 1.2964/54 (24th April low and the 200 day ma). If the pair fails there, 1.2839 (78.6% retracement of the move up in April then the 1.2740 recent low) will be the next target.