Daily Forex Market by FXCC 30Mai2012

Daily Forex Market by FXCC 30Mai2012

Euro breaks below 1.25 on Spanish downgrade

Equities traded higher today, with US and Canadian markets rallying on news that China might undertake meaningful fiscal stimulus. While industrial metals stocks rallied with the base metals complex, gold stocks fell by 2.4% and gold fell 1.7%. Industrial companies led the way in the US, with the Industrial Engineering subsector appreciating 1.9% while the S&P 500 was up by 0.87%. In short, the ‘China trade’ was in full swing today at least as far as equity markets in Canada and the US was concerned.

While stocks were up, the US dollar was not down: the US dollar index is now trading at its highest level since last September. The Euro broke below the 1.25 EURUSD level mid-day and stayed there for most of the afternoon before rallying back to the 1.25 level at the close. EURUSD continues to make new intraday lows for 2012.
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https://support.fxcc.com/email/technical/30052012/

UPCOMING EVENTS :
2012-05-30 08:30 GMT | UK - Consumer Credit (Apr)
2012-05-30 08:30 GMT | UK - Mortgage Approvals (Apr)
2012-05-30 09:00 GMT | European Monetary Union - Consumer Confidence
2012-05-30 14:00 GMT | US - Pending Home Sales (MoM) (Apr)

FOREX NEWS :
2012-05-30 01:39 GMT | Australia: s.a. Retail Sales fall 0.2% in April
2012-05-30 01:33 GMT | Australia Retail Sales s.a. (MoM) -0.2% in Apr
2012-05-30 01:01 GMT | EUR/USD threatening to break lower
2012-05-30 00:06 GMT | USD/JPY sits around 79.50 amid BoJ headlines

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EURUSD : 1.24581 / 1.24586
DAILY WEEKLY MONTHLY

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

1.2620 | 1.2590 | 1.2539
1.2483 | 1.2458 | 1.2386

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


MARKET ANALYSIS - Intraday Analysis

The EUR trading pattern appears to be repeating itself day after day. The middle chart suggests that EUR rallies during the Asian session and into the early European session, but then fails and trends lower to close both the European and North American sessions lower than the open. This suggest some buying in, but a shift In terms of technical levels, supports are seen at 1.2495/83 and then at 1.2386. On the other hand, resistance levels are seen at the 10DMA line at 1.2539, 1.2590 and then at 1.2620. The value of the RSI indicator is negative and steady; MACD is negative and holding, while CCI has crossed down the 100 line on the 1 hour chart, giving over all light short signals.

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GBPUSD : 1.55832 / 1.55844
DAILY WEEKLY MONTHLY

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

1.5805 | 1.5746 | 1.5676
1.5605 | 1.5553 | 1.5497

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


MARKET ANALYSIS - Intraday Analysis

The GBP will target the 1.5805 level, low with a violation allowing for more weakness towards the 1.5642/53 levels. A breach of this if seen will aim at the 1.5497 level. RSI is bearish and pointing lower supporting this view. The alternative scenario is for the pair to halt its weakness and then return above its trendline. This will target the 1.6180. On the whole, the pair continues to hold on to its downside pressure having violated its rising trendline.

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USDJPY : 79.333 / 79.337
DAILY WEEKLY MONTHLY

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

80.96 | 80.57 | 80.00
79.32 | 78.86 | 78.33

SUMMARY : UP
TREND : Upward penetration
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Neutral


MARKET ANALYSIS - Intraday Analysis

The market is making lower highs, and higher lows, reflecting a slowing of volatility. The RSI has resorted to the 40-60 range, reflecting consolidation momentum. Also the moving averages are converging together suggesting that the market has been clueless in which direction to take in the 1H time-frame. Giving us the classic congestion breakout, which doesn't always translate into a strong directional clue, but in the short-term, we can be seeing some growth of volatility after the convergence and retest of consolidation highs or low. To the topside, the 80-80.10 area is the very short-term resistance, while the 79.00 area is the support. We are trading in the middle near 79.50.

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