Daily Forex Market by FXCC 17Mai2012

Daily Forex Market by FXCC 17Mai2012

Negative Sentiment and Risk Aversion Continue

Positive US economic data failed to lift markets. While US April housing starts were higher and industrial production rebounded, US markets sold off as the trading session continued, slipping on news that the ECB might cut funding to Greek banks. US equity indices were down by roughly 0.5% while Canadian equities performed somewhat more strongly. WTI fell by US$1.30 to close at $92.68 and the DXY was up moderately on the session. For a full write-up of today’s US and Canada economic data releases, please see the Economic Data Recap section below.

The Fed released the minutes from its April 24-25 meeting today, and they are making headlines for reasons that we find hard to discern. The minutes included the sentence “several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great.” Minutes from the March 13 meeting said “A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum or if inflation seemed likely to remain below its mandate-consistent rate of 2 percent over the medium run.” Market sentiment will remain negative towards Europe and the continued sell off of European assets is ongoing. Without some positive news or results in Greece, with lack of overall guidance by the EU and continued worries about Spain, the current situation is expected to hold.
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UPCOMING EVENTS :
2012-05-17 12:30 GMT | USD Initial Jobless Claims
2012-05-17 12:30 GMT | CAD Wholesale Sales
2012-05-17 12:30 GMT | CAD Foreign Securities Purchases
2012-05-17 14:00 GMT | USD Leading Indicators


FOREX NEWS :
2012-05-17 04:34 GMT | GBP/USD: 1.5830 support zone in sight
2012-05-17 03:50 GMT | AUD/CAD bounces above 1.0050
2012-05-17 03:43 GMT | NZD/USD fall below 0.7607 gives way to 0.7469
2012-05-17 03:33 GMT | GBP/JPY quiet above key support 127.00

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EURUSD : 1.27432 / 1.27436
DAILY WEEKLY MONTHLY

https://support.fxcc.com/email/techn...012/EURUSD.gif

1.261 | 1.264 | 1.268
1.276 | 1.280 | 1.284

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


MARKET ANALYSIS - Intraday Analysis

Technicals are moving to the oversold zone. The bearish trend is clear over weekly charts supported by the negativity on momentum and trend indicators. A break below 1.2625 will be a very negative indication for short and medium-term traders. Today is among key support at 1.2500 and key resistance at 1.2915. The general trend over short-term basis is to the downside targeting 1.1865 as far as areas of 1.3550 remain intact. Although we might see a bounce to the 1.29 level as bulls try to break the 1.30 price

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GBPUSD : 1.59154 / 1.59162
DAILY WEEKLY MONTHLY

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1.577 | 1.583 | 1.587
1.597 | 1.603 | 1.607

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


MARKET ANALYSIS - Intraday Analysis

After breaching the psychological level of 1.6000, the pair has dropped violently, reinforcing the bearish outlook. The technical target should be at 1.5820-1.5810 followed by 1.5780 zones. Stochastic remains negative adding further confirmation for the bearish tone. The trading range for today is among key support at 1.5730 and key resistance at 1.6165.

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USDJPY : 80.305 / 80.309
DAILY WEEKLY MONTHLY

https://support.fxcc.com/email/techn...012/USDJPY.gif

79.847 | 80.025 | 80.195
80.543 | 80.721 | 80.891

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


MARKET ANALYSIS - Intraday Analysis

The pair continued consolidating above the psychological level of 80.00 and at the key support level of 80.30 while RSI 14 is on its way to attack the momentum resistance level reading a 50.A breakout above the resistance line of the descending channel is the main reason that supports the bullish expectations for today. Ultimately, a break above 80.50 will confirm and accelerate. The trading range for today is among key support at 78.80 and key resistance now at 81.75.

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