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Daily Forex Market by FXCC 01Jun2012

PostPosted: Fri Jun 01, 2012 4:55 am
by alayoua
Daily Forex Market by FXCC 01Jun2012

Spain contradicts the ECB, the EU, and the IMF

Equity markets in North America were mixed today with US equities flat while Canadian equities came in moderately positively (+0.72%). The catalyst in Canada was strong bank earnings: Canadian financial companies posted strong earnings over the past week and the sector rebounded accordingly today. Canadian financials were up by 1.55% (banks by 1.9%) while US financials were up by a more modest 0.85% (banks by 1.4%). Oil and Gas stocks held up moderately well in Canada (+0.11%) considering that WTI for delivery in July sold off by 1.4% and is currently trading at US$86.58/bbl.

Europe is clearly taking center stage at the moment, with headline like the FT website’s banner “Spain Reveals €100bn Capital Flight” garnering deserved attention (the details of the Banco De Espana study cited by the FT are slightly less bad: the capital flight occurred during Q1. But that leaves open the question ‘how much capital fled in Q2?’). With Europe gaining so much media space, we thought it might be worth turning the reader’s attention to data released in the US today which might have been overlooked – which were unfortunately rather bleak.
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UPCOMING EVENTS :
2012-06-01 07:58 GMT | EU - Purchasing Manager Index Manufacturing
2012-06-01 08:28 GMT | UK - Purchasing Manager Index Manufacturing
2012-06-01 09:00 GMT | EU - Unemployment Rate
2012-06-01 12:30 GMT | US - Nonfarm Payrolls

FOREX NEWS :
2012-06-01 05:49 GMT | EUR/USD flat, eyes on EU PMI
2012-06-01 04:43 GMT | GBP/USD inches back to down, focus on BoE
2012-06-01 04:27 GMT | EUR/USD below 1.2350 ahead of Irish vote count
2012-06-01 03:58 GMT | No longer favouring USD/JPY longs - Standard Chartered

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EURUSD : 1.23517 / 1.23521
DAILY WEEKLY MONTHLY

Image

1.2513 | 1.2471 | 1.2407
1.2301 | 1.2259 | 1.2195

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


MARKET ANALYSIS - Intraday Analysis

EUR is oversold (RSI = 23) and the market is extremely one sided, leaving the currency vulnerable to short covering. Still the downward trend is strong (not to mention expensive to fight) and accordingly trading with the trend is likely the only near‐term alternative. Technical indicators are bearish, major signals still in sell territory and downward trend strong. Ignore RSI. Supports are seen at the 21-DMA lower Bollinger level at 1.2305 and then at 1.2190. On the other hand, resistance levels are seen at 1.2460, 1.2572 which is the 10-DMA line.

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GBPUSD : 1.53864 / 1.53873
DAILY WEEKLY MONTHLY

Image

1.5647 | 1.5587 | 1.5481
1.5315 | 1.5255 | 1.5149

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


MARKET ANALYSIS - Intraday Analysis

Signals continue to be bearish, major signals in sell territory; a close above 1.5641 would be a warning. Supports are seen at 1.5419/15 and then at 1.5327. On the other hand, resistance levels are seen at 1.5637 and then at 1.5671 which is the 10-DMA line.

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USDJPY : 78.449 / 78.453
DAILY WEEKLY MONTHLY

Image

79.509 | 79.207 | 78.810
78.113 | 77.811 | 77.415

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


MARKET ANALYSIS - Intraday Analysis

USDJPY continues to trend lower, data was mixed and even with USDJPY below 79.00, the BoJ and MoF appear to only be watching; however support at the 200‐day 78.63 looms. Technicals all read bearish, major signals in sell territory and strong downward trend. The USD trended lower throughout the session and fell below the key 200-DMA line at 78.63. In terms of technical levels, supports are seen at 78.30/18, while resistance levels are noted at 79.13, then at the 10-DMA line at .79.38

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