Daily Forex Market by FXCC 10Mai2012

Greece expected to leave the Eurozone

Global markets continued to fall, including equities, and commodities as investors were in full risk aversion mode. Traders are moving in droves to the safe harbor, of the US dollar and the Japanese Yen. Political turmoil ranging from France to Greece has upset markets. The EU had stated that they will without the rest of the bailout money from Greece until political issues are resolved. In Spain, the government has had to step in and take over the largest bank, Bankia. Economic worries have spooked markets and forced Spainís borrowing costs to skyrocket.Gold continues to decline along with oil. Yesterday the EIA release crude oil inventory reports showing that crude oil inventories had continued to rise. In early morning Asian news, equity markets continued to decline, as data released in China showed a continued slowdown, while Australia reported a better the forecast unemployment report.
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UPCOMING EVENTS :
12:00 : GBP Interest Rate Decision
13:30 : CAD Trade Balance
13:30 : USD Trade Balance
13:30 : USD Initial Jobless Claims

FOREX NEWS :
Trade surplus wider than expected in April
AUD/USD dives on worse than expected China data, back below 1.0100
GBP/AUD off from fresh yearly highs 1.6074 back below 1.6000
EUR/AUD slips after upbeat Aus. jobs data

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EURUSD 1.29611 / 1.29614
DAILY WEEKLY MONTHLY



1.2804 | 1.2858 | 1.2896
1.2988 | 1.3042 | 1.308

SUMMARY : Bearish
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Bearish


MARKET ANALYSIS - Intraday Analysis

The euro is weak, having lost close to 0.2% against the USD, but still trading within Wednesdays range. The inability to break below 1.2955 was reassuring for EUR bulls in an environment where most drivers are turning rapidly bearish. Having broken the 1.2955 in yesterday, we will see the bears continue to gain strength. The markets are taking a breather this morning as the euro has recovered to 1.2951 after opening at 1.2927 It seems to be moving down again now and if there is a break below 1.2922 that could lead to an acceleration of the move lower, with support at 1.2818 targeted from both a monthly and a weekly pivot. A recovery on the other hand would most likely see the exchange rate struggle higher to fill the gap at 1.3080.

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GBPUSD 1.61460 / 1.61469
DAILY WEEKLY MONTHLY



1.5996 | 1.6032 | 1.6084
1.6172 | 1.6208 | 1.626

SUMMARY : Neutral
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Bearish


MARKET ANALYSIS - Intraday Analysis

The 1.6142 line is now fluid, after providing support for the past two weeks. This is followed by the psychologically important support level of 1.60, which could be tested if the dollar continues to rally. Next, 1.5930, which saw a lot of movement by the pair in April, has been providing strong support for the pair. Below, there is support at 1.5805, which also was tested in April. The next support level is 1.5750, which has provided support since mid-March. The final line for now is 1.5648, which was last tested in March. Overall technicals are mixed ‐ indicators that remain bullish are waning, though near term support is found at the 21 day MA-1.6098. Resistance remains at the 9 day MA -1.6189

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USDJPY : 79.702 / 79.707
DAILY WEEKLY MONTHLY



78.9506 | 79.1933 | 79.4551
79.9596 | 80.2023 | 80.4641

SUMMARY : Bearish
TREND : Down trend
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Bearish


MARKET ANALYSIS - Intraday Analysis

Technical are showing bearish ‐ the value of the RSI indicator is negative and declining, MACD is thinly negative and steady, while CCI has crossed down the 100 line on the 1-hour chart, giving over all short signals. A break above yesterday's top and nearest resistance 80.08 would encourage further recovery of the dollar. Immediate support is today's bottom at 79.60, and consistent break below it could strengthen the yen further down towards next target 78.76.

Source: FX Central Clearing Ltd, (http://www.fxcc.com)