AUDUSD might be forming a cycle top at 0.8550 level on 4-hour chart. Key support is now at 0.8383, a break below this level will confirm the cycle top and indicate that the bounce from 0.8066 has completed, then another fall to 0.8250 area could be seen. Resistance is at 0.8550, only rise above this level could signal resumption of uptrend, then next target would be at 0.8650 area.
By Fast Brokers – Gold is consolidating above its highly psychological $1200/oz level as investors debate whether to retest previous May highs. Consolidation above $1200/oz is certainly a positive development, though it will be interesting to see whether the precious metal can manage to break out again or whether it deviates back below $1200/oz. Overall, the risk trade is in a consolidation phase and it appears investors are deciding where to take the next leg. Considerable downward pressure remains due to the fiscal headwinds blowing form the EU. Meanwhile, we’ve got some important data coming this week along with and RBA decision tomorrow, meaning activity could pick up as the trading week progresses. China will get the ball rolling tomorrow with manufacturing PMI. Fasten your seatbelts because we could be in for another volatile week.
Technically speaking, gold faces technical barriers in the form of intraday and 5/18 highs. Additionally, the psychological $1250/oz level should serve as a solid technical barrier should it be reached. As for the downside, gold has multiple uptrend lines serving as technical cushions along with 5/25 and 5/21 lows. Furthermore, the psychological $1200/oz area now becomes a technical cushion.
Present Price: $1210.78/ oz
Resistances: $1215.69/oz, $1219.16/oz, $1222/oz, $1226.80/oz, $1229.56/oz
Supports: $1210.58/oz, $1207.21/oz, $1202.59/oz, $1199.91/oz, $1197.08/oz.
Psychological: $1200/oz, $1250/oz
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
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By Fast Brokers – The AUD/USD is balancing around its psychological .85 level after Fitch’s Spain downgrade sent the risk trade lower on Friday. However, the Aussie has been outperforming over the past few trading sessions ahead of tomorrow’s key data. Australia will release retail sales and building approvals data followed by and RBA rate decision. Hence, tomorrow could prove to be a make or break session for the Aussie. Should Australia’s economic data top expectations and the RBA give a neutral to positive outlook, the Aussie could extend its impressive upswing from previous May lows. However, conditions in the EU are still unstable and there’s a high probability of a psychological event hitting again this week. Regardless, the Aussie will have enough data and news of its own to either exhibit a relative strength or weakness. The RBA was more cautious in its previous meeting minutes, meaning the odds of a rate hike tomorrow are low. Additionally, problems in the EU could keep the RBA in a defensive position. Therefore, more emphasis may be placed on the retail sales and building approvals data. The Aussie has edged above some key downtrend lines and the EUR/USD and Cable have been trying to build a base over the past few sessions, meaning the Aussie could be poised for another solid near-term topside run should events unfold in a positive manner. On the other hand, these markets are very unpredictable and the possibility of a retracement exists. Hence, investors should be wary and keep a close watch on the wires.
Technically speaking, the Aussie still faces multiple downtrend lines along with intraday and 5/28 highs. As for the downside, the Aussie has technical cushions in the form of 5/28 and 5/19 lows. Additionally, the psychological .82 area could serve as a solid technical cushion should it be tested.
Price: .8492
Resistances: .8503, .8514, .8536, .8551, .8565, .8584
Supports: .8470, .8452, .8426, .8404, .8380, .8356
Psychological: .85, May lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
By Russell Glaser – The pair has experienced a bit of a consolidation since reaching a low of 1.2150 last week. As such, the price has climbed close to the bearish channel that has formed on the daily chart, presenting a possible trade setup to go short on the pair.
Friday’s trading had the EUR/USD climbing to a daily high of 1.2450. This daily high was the third contact point for the downward sloping trend line, making it a significant trend line. A parallel line drawn below the price action displays a bearish channel. The long term downward sloping trend line is also displayed, taking into account all the price action for the bearish trend.
A trade setup to go short on the EUR/USD is forming as the price moves closer to the upper boundary of the channel. Going short at a trend line can be one of the best ways to enter into a trending market.
A protective stop can be placed above the resistance level (R1) at 1.2390 and the support level (S1) at 1.2150 can be used as a price target. At the current spot price of 1.2315, this would give roughly a 2:1 profit risk reward.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
By Fast Brokers – The USD/JPY is continuing its positive performance from May lows as the currency pair creates some topside separation from its highly psychological .90 level. The USD/JPY’s run from May lows has been impressive and a new bottom appears to be in place. However, investors should keep in mind that the Yen’s safe haven status could come back into play should investor uncertainty escalate once again. Meanwhile, the USD/JPY is deriving today’s strength from news that Japan’s social democrat party is stepping down. Hatoyama’s approval rating is now below 20% and nearly 60% of Japanese voters think he should resign. Discontent over Hatoyama’s unwillingness to shut down America’s military base has eroded confidence in his leadership. Hence, investors believe July’s upper house election may result in a coalition government and reduce Japan’s ability to counter global economic headwinds. This has reduced near-term appetite for the Yen. However, as we said before, the Yen has not lost its status as a safe haven during time of uncertainty, meaning investors should keep a wary eye on new developments in the EU. Japan’s industrial production release came in below analyst expectations today, though average cash earnings exceeded estimates. Hence, it’s a mixed bag for Japanese fundamentals. Tomorrow’s Asia trading session should be active with Chinese manufacturing PMI on deck along with key releases from Australia followed by an RBA rate decision. Therefore, it will be interesting to see how risk tolerance fares over the next 24-48 hours.
Technically speaking, the USD/JPY still faces multiple downtrend lines along with 2/19 highs and psychological 92 level. As for the downside, the USD/JPY has technical supports in the form of multiple uptrend lines along with 5/28 and 5/26 lows. Additionally, the highly psychological 90 level should serve as a solid technical support should it be tested.
Present Price: 91.49
Resistances: 91.50, 91.67, 91.79., 91.94, 92.11, 92.25
Supports: 91.26, 91.03, 90.88, 90.77, 90.64, 90.55, 90.35
Psychological: .90, .92, May lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
By Fast Brokers – The Cable is stabilizing above Friday’s lows after the risk trade got hit by news that Fitch is downgrading Spain’s debt. However, as with the EUR/USD, losses in the Cable were limited and the currency pair is still comfortable above previous May lows. Hence, it seems investors are making an effort to establish a base despite the continuous negative news flow. 1.45 appears to be a key level at the moment and the Cable may need a meaningful positive psychological event in order to break free to the topside. Meanwhile, negative psychological headwinds remain and the road to the topside is riddled with challenges. Therefore, investors should keep an active eye on the news wire. The data wire will pick back up tomorrow with the release of China’s manufacturing PMI followed by key Australian data and an RBA rate decision. Later the UK will print its own manufacturing PMI and the Halifax HPI is tentative. Hence, despite today’s stability we can expect activity to pick up as the trading week progresses.
Technically speaking, the Cable faces multiple downtrend lines along with intraday and 5/28 highs. Additionally, the psychological 1.45 area could continue to serve as a solid barrier over the near-term. As for the downside, the Cable has support in the form of intraday and 5/20 lows. Furthermore, the psychological 1.42 level could serve as a technical cushion if it’s reached.
Present Price: 1.4477
Resistances: 1.4498, 1.4521, 1.4543, 1.4584, 1.4626, 1.4671
Supports: 1.4432, 1.4409, 1.4387, 1.4359, 1.4326, 1.4301
Psychological: 1.42, 1.45, May 2010 and February 2009 lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
By Fast Brokers – The EUR/USD had a poor finish on Friday, sinking back towards 1.2250 after news hit that Fitch is downgrading Span’s debt. However, the losses were contained compared to what we’ve seen previously as the EUR/USD managed to stay well above previous May lows. In fact, it seems the EUR/USD is making an effort to form a bottom. However, intense psychological headwinds are still circling and it remains to be seen just how long these May bottoms can hold if the EUR/USD doesn’t piece together some more consistent upward momentum. That being said, investors should keep their eyes on the news wire per usual. We’re in a fluid situation and there’s a high probability that more news with a considerable weight will hit the wire again this week. However, even if the news wire is quiet we’ve got plenty of events on tap, highlighted by an RBA rate decision and U.S. employment data. Hence, even though the EU data wire will be relatively quiet this week investors should still be prepared for volatility. Trichet will address the public today and investors will receive EU M3 money supply. The U.S. will have a banking holiday, meaning trading could be choppy today. Though activity should pick up during tomorrow’s Asia trading session with Chinese manufacturing PMI on deck along with a host of Australian data followed by the RBA’s rate decision.
Technically speaking, the EUR/USD seems to be getting comfortable in a trading range between 1.25 and May lows. Meanwhile, the EUR/USD faces multiple downtrend lines along with intraday and 5/28 highs. As for the downside, the EUR/USD has technical cushions in the form of intraday and 5/27 lows. Furthermore, the psychological 1.20 level should serve as a strong technical support should it be tested.
Present Price: 1.2320
Resistances: 1.2341, 1.2369, 1.2386, 1.2412, 1.2436, 1.2456
Supports: 1.2304, 1.2280, 1.2268, 1.2234, 1.2208, 1.2191
Psychological: May 2010 highs and lows, March 2006 lows, 1.24, 1.25, 1.20
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
Market Analysis by Finexo.com
EUR
The Euro fell sharply on Friday as Fitch Ratings slashed Spain’s long term credit rating, fueling concerns about Europe’s sovereign debt crisis. Fitch downgraded Spain’s debt rating to AA+, stating that the country will not recover as quickly as Spanish government had previously forecasted.
In regards to the Greek debt crisis, European Central Bank Executive Board member Lorenzo Bini Smaghi stated that investors are ill advised to expect a euro-nation to default and that policy makers will take all the necessary steps to defend the single currency region. In Greece, the government has adopted austerity measures equal to almost 14% of its GDP. According to the Greek Finance Minister, the debt stricken nation will not restructure its debt and will not require additional cutbacks in order to meet the fiscal targets determined by the joint EU/IMF rescue package.
Also hurting the Euro is the fact that forex investors have begun to use the single currency to fund their carry trades. Now instead of shorting the 0.25% yielding dollar and yen, they are choosing to sell the Euro, even though its yield is still at a 1.0%.
A support line of $1.2204 can be seen for now; however, if it does not hold the key support of $1.2155 should be watched. The EURUSD has tried to test the resistance at $1.2450 but for now the EURUSD graph looks bearish.
GBP
While the U.K continues on its path to recovery from the worst recession since World War II, the country’s recovery remains vulnerable to the worsening sovereign debt crisis next door in the Euro Zone.
News was quiet from the UK last week as the parliament began working on its new budget. The new government wants to cut £6 billion from its budget. While there has been little opposition to these plans, definite obstacles lie ahead as newly elected Prime Minister David Cameron plans on reducing welfare benefits- an issue that is sure to cause protests and may prove to be a more difficult to implement. Beyond the UK budget talks, Forex traders will want to watch for key UK PMI and housing figures that will be released this week. The UK’s economic turnaround which began last spring has slowly been stalling; therefore, traders will be eager to see whether in fact the UK is at risk of experiencing a double dip recession, or whether growth is returning.
JPY
The Yen fell across the board as speculations increased that the political turmoil in Japan will harm the currency’s “safe-haven” appeal. The Japanese currency tumbled after a poll revealed that more than half the nation wants Prime Minister Yukio Hatoyama to resign.
In this morning’s trading session, the “safe haven” currency tumbled to 91.54 yen per dollar from 91.06 on Friday. Last week, rising equity prices prompted trader to sell the safe haven currency. As a result, the USDJPY which had seemed destined to trade back below 89.00 rose above 91.00.
Forex Market Review & Analysis by Finexo.com
Disclaimer: Trading the foreign exchange (Forex) carries a high level of risk, and may not be suitable for all investors. All information and opinions contained on this website are to be used for general informational purposes only and do not consitute investment advice.
By eToro – The week was positive for the equity markets, but there was a lot of volatility, which made the ride very bumpy. Rumors mid‐week that the Chinese planned to sell the Euro assets pushed the market down with vigor, but after a denial on Thursday, the markets rebounded with strength. The situation in Europe continues to deteriorate as Fitch downgraded Spain 1 notch to AA.
For the full review please click here …
Market Analysis provided by eToro
Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.
By Forex Yard – Crude Oil rose Monday on improved demand prospects as investors speculate speculation that economic growth in the U.S. will fuel demand. Crude Oil for July delivery rose as much as 71 cents, or 1%, to $74.68 a barrel in electronic trading on the New York Mercantile Exchange.
Oil received a boost after Federal Reserve Bank of Chicago President Charles Evans reassured markets that the U.S recovery can weather the uncertainties prompted by Europe’s debt crisis. Furthermore, prospects of demand are optimist ahead of the start of the U.S driving season which officially begins this Memorial Day weekend. This season usually leads to an increase in demand.
In a slow trading day today, the Yen weakened to 91.47 per USD from 91.06 in New York on May 28. The JPU slid to 112.57 per EUR from 111.77 last week. The EUR earlier climbed to $1.2335; however, it is currently back to trading below $1.2300.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
