forex market insight 14 june 2011

8/6/2019 Forex Market Insight 14 June 2011

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Market Insights 14 June 2011

Eurozone crisis continues as Greece gets world’s lowest rating from Standard & Poor’s

Risk appetite see small bounce as Dow pushed higher in early trading

Commodities trade sharply lower overnight

Risk currencies see overnight gains eroded as Asia opens

Dow Jones and S&P finish slightly higher, snapping losing streak, but give up early gains

Slew of Chinese figures due out at 12.00pm, including all-important CPI

Headlines

AUD/USD

XAU/USD

Resistance

1.0640

Support

1.0525Market Sentiment

Bearish

AUD traded higher overnight to retest 1.0630/40 resistance area on back of short cross covering. Only above 1.0670 will thisbullish trend continue into Tuesday while traders keenly await the slew of Chinese figures due out later for next directionalpush.

Gold traded lower overnight falling below 1532.00 support level as investors grew nervous on global economic growthexpectations. While volatility is normal these fears should provide upside support to the yellow metal with traders looking tobuy dips into 1515.00/1520.00 levels for next move higher.

Resistance

1532

Support

1510Market Sentiment

Bullish



EUR/USD

GBP/USD

USD/JPY

The USDJPY is currently quite delicately poised at support at 80.10 with the most recent push higher in this pair making thebears a little nervous that the USD could be about to stage a rally. Until 80.70 is breached traders will be focusing on thedownside, with a break of 80.10 very bearish.

The GBPUSD continues to consolidate in a broad flag pattern, with the pair currently pushing into resistance at 1.6400/20.From here, traders expect the pair will trade back toward 1.6200, although a break of 1.6400/20 will be bullish.

The EUR staged a slight recovery in Monday’s trade thanks to an improvement in risk appetite. However, the pair is still clearlydominated by the bears, and the early move higher to 1.4430 was used as an opportunity to take new shorts. From here, move back to 1.4320 seems likely, and a break of that level could see further selling.

Resistance

1.4430

Support


Bearish

Resistance

1.6400/20

Support


Bearish

Resistance

80.70

Support


Bearish



AUD/JPY

OIL

Economic Calendar & Pivot Points

Forex Ca ital Tradin – Ph 1800 ForexCT

F/Cast Last F/Cast Last

» CNY: CPI y/y 5.5% 5.3% » GBP: CPI y/y 4.5% 4.5%

» JPY: Monetary Policy state. 4.75% 4.75% » USD: Core Retail Sales m/m 59.8 59.7

» JPY: Overnight Call Rate <0.10% <0.10% » USD: PPI m/m 0.1% 0.8%

» GBP: BOJ Press Conference » USD: Retail Sales m/m -0.3% 0.5%

» » Pivot Points AUD/USD XAU/USD EUR/USD GBP/USD USD/JPY AUD/JPY CRUDE OIL

Open 1.0611 1515.34 1.4416 1.6375 80.21 85.11 96.79

R3 1.0764 1551.99 1.4564 1.6600 81.16 86.29 102.09

R2 1.0701 1542.33 1.4497 1.6495 80.93 85.81 100.70

R1 1.0656 1529.79 1.4456 1.6431 80.56 85.45 98.90

PP 1.0593 1520.13 1.4389 1.6326 80.33 84.97 97.51

S1 1.0548 1507.59 1.4348 1.6262 79.96 84.61 95.71

S2 1.0485 1497.93 1.4281 1.6157 79.73 84.13 94.32

S3 1.0440 1485.39 1.4240 1.6093 79.36 83.77 92.52

Crude fell sharply over the last couple of sessions as concerns about global growth continue to worry traders. Crude had falleall the way back to 96.40 and this now becomes support. Traders will be looking to take shorts back on a retracement to 98.0or on a break of 96.40.

The AUDJPY continues to find good support at 84.30 and traders will be buying lower levels until this level cracks. This pair ishighly sensitive to global economic expectations, so a poor result from Chinese CPI could see the key 84.30 finally crack andhas the potential to produce a sharp move lower.

Resistance

98.00

Support


Bullish

Resistance

85.80

Support


Bullish until 84.30 breaks

forex market insight 14 june 2011

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