Spain’s 10 year benchmark bonds rose to 5.9 percent

By HotForex | Daily Forex Analysis | Wed, Apr 11, 2012

Yesterday the Spanish 10 year government bonds rose to 5.9 percent raising the concerns that Spain might be the next European country to require a bailout. Given the real fears that the debt situation in Spain may get worsen the EURUSD lost ground and dropped to 1.3052 area. The pair is trading higher this morning at a rate above 1.3100. Support for the EURUSD is seen at 1.3040 and resistance is seen at 1.3164. The Inside View indicator on HotForex shows that 54 percent of the traders are long on the EURUSD.

GBPUSD

Yesterday the Cable fell 0.27 percent reaching levels around 1.5808. Positive Retail Sales data released earlier today boosted the pair and the current price action is about 100 pips above the lows reached yesterday. In the UK, the RICS House Price Balance Index in the UK rose to -10.0 in March, compared to -13.0 in February. Support for the GBPUSD is seen at 1.5820 and resistance is seen at 1.5930. The Inside View indicator on HotForex shows that 58 percent of the traders are short on the GBPUSD.


AUDUSD
Aussie lost some solid ground yesterday reaching the area around 1.0226. During the Asian session the pair was boosted up currently trading around 70 pips higher than the lows reached yesterday. Looking ahead this week we have the labor data due on Thursday. Support for the AUDUSD is seen at 1.0225 and resistance is seen at 1.0320. The Inside View indicator on HotForex shows that 61 percent of the traders are short on the AUDUSD.
USDCAD

The USDCAD broke up yesterday reaching levels above the parity. Today the price action of the pair will be mostly driven by the Housing Starts data from Canada. Support for the USDCAD is seen at 0.9980 and resistance is seen at 1.0050. The Inside View indicator on HotForex shows that 89 percent of the traders are short on the USDCAD.

Important releases and events
CAD: Housing Starts
USD: Import Prices m/m; Crude Oil Inventories; Beige Book; Federal Budget Balance