Forex Market
USD/JPY Analysis
USD/JPY rallied in early trade as the euro found early support, but soon slipped from the Y80.62 highs seen around the Tokyo fix, weighed by selling from Japanese exporters.
Asian Currencies Technicals
AUD/USD: Daily tech studies correcting lower. With the pair pausing ahead of initial support, the $0.9996 level will be key to start the week with focus now on tests of the 21 day moving average.
EUR Analysis
Opened at $1.2550 after $1.2518/64 overnight range. Muted flows and limited appetites were the order of overnight markets with euro finding support from Asian sovereign demand off the low, returning pair to $1.2550.
JPY Analysis
Opened at Y80.30/100.77 after Y80.02/50 and Y100.40/101.11 overnight ranges. JPY remained defensive again overnight though euro slippage slightly offset, the dollar stalling around Y80.50 as exporter offers capped, and EUR/JPY holding shy of overnight highs.
AUDUSD: What next after “ideal” resistance test?
AUDUSD turned tail after the FOMC meeting on Wednesday right at the final key resistance area and is now testing the “ideal” support. What’s the pair’s next move?
GBP Analysis
Opened early Europe at $1.5612, stg0.8041, GBP closed in NY at $1.5597, off traded lows at $1.5578 as rate was pulled lower by deeper EUR/USD slippage, with a paring back in risk the main driver.
JPY Analysis
Opened in early Europe at Y80.43 and Y101.03, opened in Asia at Y80.25 and slipped to Y80.01 on reported hedge fund/exporter supply as Japan fiscal woes were again in the headlines.
EUR Analysis
Opened early Europe at $1.2554, EUR/USD closed in NY at $1.25439, off pressured lows of $1.2532. Risk suffered through the NY session as market was made aware of the action by Moody’s to downgrade 15 major financial institutions, position adjustment ahead of initial Spain bank audit results (full results due in Sep) and Goldman Sachs […]
A week to save the Eurozone?
“Its like déjà-vu, all over again” – Yogi Berra After the relief of a ‘pro-bailout’ Greek government and a G20 communique that urged and promised action to stem the Eurozone crisis, a sense of reality has returned to the market sentiment.
Behavioral Finance: Daily Forex Outlook: A different kind of euro sell-off
EUR USD (1.2555) The general grumble among investors yesterday was that the scale of global economic deterioration was continuing to outpace that of the policy responses.
Technical Analysis (Short Cycle Report): Gold rolling over
Gold is in the early stages of its next big wave down. As long as USD1,641 continues to hold as resistance the probabilities that the crucial USD1,522 support is broken remain high. Cable looks particularly vulnerable to losses, stock markets are cycling lower and the 10-year Bund yield is at a strong resistance zone.
FX Market Technical Research
EUR/USD: Finds Support at 21-DMA. The euro sees a bear-cross in the daily stochastic study as the market slides to find support at the 21-day moving average of $1.2522, which meets a 50% retracement of the June rally at $1.2518.