Daily Forex Market by FXCC 04Jun2012

Daily Forex Market by FXCC 04Jun2012

Asian markets fall on worries of the EU

In the week ahead, the global markets will continue to gyrate between fear of Greece’s fallout from the Euro zone and hopes of austerity measures that may revive the global markets. The European Union is targeting July 9 as the start date for its permanent eurozone rescue fund, the €500 bn (USD620 bn) European Stability Mechanism. Parliaments across the 17-nation currency union must ratify the fund before it becomes available to counter the financial crisis spawned in Greece.

Until it receives 90% of its expected capital allotment, officials must turn to the temporary European Financial Stability Facility, a €440 bn fund with €240 bn available. Even Italy might be seen pressurizing the ECB to print more Euros so that Italy can also be saved. So we think these measures will be following suit that will eventually decide the fate of the markets in the times to come.
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UPCOMING EVENTS :
2012-06-04 07:00 GMT : UK - Halifax House Prices
2012-06-04 08:30 GMT : EMU - Sentix Investor Confidence
2012-06-04 09:00 GMT : EMU - Producer Price Index
2012-06-04 14:00 GMT : US - Factory Orders

FOREX NEWS :
2012-06-04 01:45 GMT : US Dollar rules as HK tracks risk off sentiment
2012-06-04 01:32 GMT : Australia May ANZ Job Advertisements -2.4%
2012-06-04 00:16 GMT : USD/JPY spikes; Threat of BoJ intervention
2012-06-03 23:50 GMT : Japan: Monetary Base (YoY) (May): 2.4%


EURUSD : 1.24134 / 1.24140
DAILY WEEKLY MONTHLY

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

1.2496 | 1.2470 | 1.2437
1.2378 | 1.2352 | 1.2319

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


MARKET ANALYSIS - Intraday Analysis

The EURUSD has dropped to its lowest level since July 2010. Interestingly, the low today is within pips of the 2008 (October) low. The sharp moderation warns that the EURUSD could consolidate or bounce modestly in the coming days, but the overall trend remains clear in our opinion and we favor continued declines until sentiment sees a more significant shift. The next support isn’t until 12150. Resistance is now around 125.00 although the breakdown level (January low) of 126.22 (and this week’s high) would be ideal to short into if reached.

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GBPUSD : 1.53699 / 1.53710
DAILY WEEKLY MONTHLY

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

1.5418 | 1.5397 | 1.5383
1.5348 | 1.5327 | 1.5313

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


MARKET ANALYSIS - Intraday Analysis

The market is heavily oversold, so some kind of a recovery may be expected early this week. If such a recovery indeed takes place, we may see gains to 1.5680 levels. Such a rally will likely be favored as selling opportunities by the big players, because the daily trend is down. On the downside, firm break below 1.5260/30 may bring a panic sell-off all the way down to 1.50000. There was no bounce of course (the GBPUSD didn’t even reach its 10 day average) and the GBPUSD took out nearly all of 2012’s gains in May and has reached the trendline that extends off of the 2009 and 2010 lows so we could get a bounce from these levels. If so, then resistance is 15530. A bounce into there would be a candidate to short against 15720.

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USDJPY 78.182 / 78.183
DAILY WEEKLY MONTHLY

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

78.715 | 78.555 | 78.350
78.005 | 77.805 | 77.615

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


MARKET ANALYSIS - Intraday Analysis

The USDJPY continues to slip and has reached the much discussed 7830 (resistance throughout late 2011). There is nothing to suggest that a low is in place right now and the next level of support is 7780. I’d be willing to try longs on a test and rebound from that level with an initial stop (plan on moving it up) below 7600. The chart shows trending conditions are quite negative here. The prices have not overcome the 83.80 level yet on a sustained basis and remain below the declining 100-week moving average. So, the main focus should be considered on the downside. Look for a possible move down from the 2007 top and if that's the case, the current pullback should hold above the 76.00 level. A subsequent move above 83.80 will turn the hourly chart quite bullish.

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