AUSTRALIA: Westpac Still Expecting May Cut Despite Wages Beat

• RES 4: 1.1608 High Nov 9 2021
• RES 3: 1.1555 1.382 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 2: 1.1495 High Feb 10 2022 
• RES 1: 1.1473 High Apr 11 
• PRICE: 1.1368 @ 06:04 BST Apr 14
• SUP 1: 1.1144 High Apr 3 and a recent breakout level     
• SUP 2: 1.08932 20-day EMA     
• SUP 3: 1.0765 50-day EMA and a short-term pivot level     
• SUP 4: 1.0733 Low Mar 27 and a key short-term support

A bull cycle in EURUSD remains intact and last week’s gains reinforce this condition. The breach of 1.1144, the Apr 3 high and bull trigger, confirmed a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 1.1555 next, a Fibonacci projection. Initial support lies at the 1.1144 breakout level. Key support is at 1.0932, the 20-day EMA.

Asia’s major bourses had a better day after President Trump paused import duties on consumer electronics giving a boost to investor sentiment across the region.  Whilst the pause is temporary, it gives markets time to pause and focus on other areas in the global economy where risks are rising. 

• In China the Hang Seng led the way today rising +2.4%, with the CSI 300 up +0.47%, Shanghai up +0.86% and Shenzhen up +1.5%.
• The Kospi had a solid day rising +0.91% in a week where the Central Bank meets.
• In Malaysia, the FTSE Malay KLCI is up +1.4% in a week where 1Q GDP is released.
• For Indonesia, the Jakarta Composite is putting in another day of solid gains rising +2.00% following stronger than expected FX Reserve data.
• In Singapore, the MAS eased policy and pointed to lower growth whilst the FTSE Straits Times rose +1.46%.
• India’s NIFTY 50 is very strong this morning, rising +1.9% ahead of this week’s CPI release where it is expected that inflation will continue to moderate. 

• RES 4: 133.00 round number resistance               
• RES 3: 132.56 High Feb 28 and a key resistance       
• RES 2: 132.03 High Apr 7 and the bull trigger
• RES 1: 131.42 High Apr 11                    
• PRICE: 130.63 @ 05:44 BST Apr 14
• SUP 1: 129.59/128.60 20-day EMA / Low Apr 9         
• SUP 2: 128.47 Low Mar 28            
• SUP 3: 127.74 Low Mar 25 and a key short-term support 
• SUP 4: 127.20 Low Mar 17   

Bund futures traded in a volatile manner last week and for now, remain below their recent highs. A bull cycle is in play and the latest pullback is considered corrective. A fresh short-term cycle high on Apr 7 reinforces a bullish theme. The contract has recently cleared 131.14, 76.4% of the Feb 28 - Mar 11 bear leg. This opens 132.56 next, the Feb 28 high. Initial firm support lies at 128.60, the Apr 9 low.