Market Insights

Headlines

27 June 2011

After an early push higher on Friday, markets reverse lower on Euro debt contagion fears AUD plunges back to support at 1.0460, break support in early Monday trading EUR, GBP both finish week with steep losses Gold falls below $1500, sees largest two-day falls in seven weeks, as Fed stimulus wind-back bites Dow losses 200 points from the intra-day highs, closes down 1.0% With no important data today, with the focus likely to remain on Europe in the near term

AUD/USD
Resistance 1.0460 Support 1.0360/80 Market Sentiment

Bearish

The Aussie got up to resistance at 1.0600 on Friday before reversing sharply lower. Weve opened Monday morning on a downbeat note and the AUD/USD has just broken below key support at 1.0460. This sets up the pair for further downside, with traders looking for new shorts on any move back to 1.0460.

XAU/USD
Resistance 1510 Support 1480 Market Sentiment

Bearish Gold continued lower on Friday as the impact of the US Feds statements last week hit expectations of further US stimulus. This has seen a sharp selldown in gold and on Friday we saw the precious metal break below 1500 for the first time in more than a month. From here, the focus will remain on the downside, with next support seen at 1480.

EUR/USD
Resistance 1.4190 Support 1.4070 Market Sentiment

Bearish The Euro has been sent sharply lower after ECB president Trichet said on Friday that Greek debt contagion is likely to impact on European banks. The stronger USD is also playing a part. Weve seen heavy selling on Mondays open with key support seen at 1.4070. A break of this level sets up a move to 1.3970.

GBP/USD
Resistance 1.5940 Support 1.5780/800 Market Sentiment

Bearish The GBPUSD has broken below key medium-term support at 1.5940 in early Monday trade and this has the potential to set up a bearish week for this pair. Now that 1.5940 has been broken, this should become resistance, with the potential for a move back to 1.5780/800.

USD/JPY
Resistance 80.70/80 Support 80.35/40 Market Sentiment

Bullish The USD/JPY broke below support at 80.40 on Friday but weve seen it move back above 80.40 in early Mondays trade. The dollar-yen hasnt been able to benefit from the recent greenback strength, but while the pair is above 80.40, the market is likely to favour the bullish side.

SILVER
Resistance 34.50 Support 33.30 Market Sentiment

Bearish Silver has now broken below 34.50 and this is likely to be seen as bearish by the market in the near term. Additionally, the recent USD strength will also contribute to the bearish case. That said, theres likely to be good support at lower levels on silver, with support seen first at 33.30 and then 32.50.

USD/CHF
Resistance 85.50 Support 83.30 Market Sentiment

Bullish The dollar-Swiss has found buyers way back down at support and weve seen a solid bounce from these levels. The market will now expect the USD/CHF to push back up to the topside of the range at 85.50.

GBP/JPY
Resistance 129.00/40 Support 128.10 Market Sentiment

Bearish The GBP/JPY appears to have found support around 128.10 and this has seen a small stall in prices. The market now expects a small bounce in this pair as part of a natural retracement higher. Any move back to 129.00/40 is likely to see new shorts initiated.

AUD/JPY
Resistance 84.80 Support 84.00 Market Sentiment

Bearish The Aussie-yen looks to be trying to break below key support at 84.00 but the buyers just wont budge. Any break below 84.00 will be extremely bearish after the substantial amount of time spent in consolation.

OIL
Resistance 91.30/50 Support 90.00 Market Sentiment

Bearish Oil continues to be in control of the bears with prices consolidating after the most recent move lower. In the near term, resistance is seen at 91.30/50 with support seen at 90.00. Any ongoing USD strength is likely to see oil head lower.

Economic Calendar
F/Cast
USD: Core PCE Price Indx m/m USD: Personal Spending m/m 0.2% 0.2%

Last
0.2% 0.4% USD: Personal Income m/m USD: FOMC Kocherlakota

F/Cast
0.4%

Last
0.4%

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