Daily Forex Market by FXCC 14Mai2012

EU Finance Ministers call for Emergency Meeting.

Markets continue to reel over European uncertainties as they open the week in risk-aversion mode. Greece was unable to form a government over the weekend, and will go back to the polls to try to elect new parties. Spainís ongoing financial woes and growing worries over the banks in Spain also weigh on the markets. The US dollar and the Japanese Yen, continue to maintain strength as investorís park funds in safe havens. Gold and crude oil continue to fall, as most USD denominated currencies cannot support the high dollar at present. Even gold trading under the 1600 price is too expensive with the current dollar value. The early part of the week, is thin on eco data, but should be big in political drama as the EU Finance Ministers have called an Emergency meeting today to discuss the future of Greece.
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UPCOMING EVENTS :
2012-05-14 08:00 GMT | Italy - Consumer Price Index (EU Norm) (MoM)
2012-05-14 08:00 GMT | Italy - Consumer Price Index (EU Norm) (YoY)
2012-05-14 09:00 GMT | European Monetary Union - Industrial Production w.d.a.
2012-05-14 09:00 GMT | European Monetary Union - Industrial Production s.a.

FOREX NEWS :
2012-05-14 06:10 GMT | Germany: Wholesale Price Index rises 0.5% in April
2012-05-14 06:00 GMT | Germany: Wholesale Price Index (MoM) grows 0.5% in Apr; (YoY) up 2.4%
2012-05-14 01:41 GMT | Australia: Housing finance rises 0.3% in March
2012-05-14 01:31 GMT | Australia Mar Investment Lending for Homes declines to -1%

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EURUSD : 1.28887 / 1.28891
DAILY WEEKLY MONTHLY



1.2842 | 1.2874 | 1.2887
1.2905 | 1.2936 | 1.2978

SUMMARY : Bearish
TREND : Bearish
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Overbought


MARKET ANALYSIS - Intraday Analysis

The sustained close below 1.3000 unlocked the important multi-month reversal pattern for a fast move into 1.2626 (16 January swing low). This morning MA 10 -20 all read sell, technical indicators are all reading sell, although the 5day MA is a buy signal. This might be an opportunity to buy on the dips below the 1.29 price. Support is found at the 1.28 level. Meanwhile, only a sustained daily close back above 1.3284 (01st May high), puts this scenario on hold for a potential recovery into our upside target zone at 1.3430/60 (200-day average).

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GBPUSD 1.60754 / 1.60759
DAILY WEEKLY MONTHLY



1.6026 | 1.6040 | 1.6053
1.6080 | 1.6094 | 1.6107

SUMMARY : Up
TREND : Upward penetration
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Bearish


MARKET ANALYSIS - Intraday Analysis

The sterling should see further choppy activity over the short-term the overall tone remains positive and we look for 1.6063 to more or less contain current weakness. The pair will most likely recapture of 1.6199 suggesting completion of the correction, setting the stage for an attack on 1.6302 then 1.6500/1.6618 (psychological/August reaction high) as the bull run extends.

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USDJPY : 80.050 / 80.056
DAILY WEEKLY MONTHLY



79.62 | 79.74 | 79.90
80.64 | 80.32 | 80.15

SUMMARY : Neutral
TREND : Sideway
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Bearish


MARKET ANALYSIS - Intraday Analysis

The yenís bearish pullback remains weak beneath but has pushed through the key psychological level at 80.00. We are looking at weakness beneath 80.00-80.12 (38.2% Fibonacci retrace/January advance), which will lead to further setbacks into critical support at 79.16 (61.8% Fibonacci). Todayís momentum pushes within a multi-week bear channel. Only a snap back above the upper ceiling near 80.50 signals a potential recovery higher into 82.00.

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