The calm before the storm.... EU Summit formally begins today.
Today begins the three ring circus, known as the EcoFin Summit, or the EU Summit, with all the hype of a Broadway Show, getting more press coverage then the Euro games as Finance Ministers from all the EU nations advance their own personal agendas while seeking as much press coverage as possible. Markets will be controlled by news flow and press with lots of incorrect, out dated and erroneous statements. Plans and programs will be leaked and divulged, none of which will have anything to do with the final outcome. Markets and Investors do not expect much from the carnival. Lots of Grand Plans and Master Schemes, which will take years to enact or never happen. Currency markets are expected to hold firm, as they have calmed leading into the Summit, risk aversion remains the overall theme.
Pressure is on the Finance Ministers to come up with a comprehensive plan to save the euro and the EU, today, as it might not exist to implement their long term schemes. This is D day.. Elsewhere, the US has had some positive eco data on the home front, with housing showing some life and Durable goods also on the positive side. Consumer confidence has been dragging, although with the drop in gasoline prices, markets were expecting a bit of a turn, but the jobs market continues to weigh on Americans. Japan, is in political turmoil, as Prime Minister Noda, risked all of this capital to pass the increase in Consumption Tax legislation, which passed with a wide margin, but now faces problems within his coalition as enough members voted against to lose his controlling interest.
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UPCOMING EVENTS :
2012-06-28 08:30 GMT UK - Gross Domestic Product
2012-06-28 09:00 GMT EMU - Consumer Confidence (Jun)
2012-06-28 12:30 GMT US - Gross Domestic Product
2012-06-28 12:30 GMT US - Core Personal Consumption Expenditures
FOREX NEWS :
2012-06-28 04:26 GMT EUR/USD jumps ahead of the EU Summit
2012-06-28 04:22 GMT Aud new houses and job vacancies came soft today.NAB
2012-06-28 02:58 GMT EUR/AUD dips to 3-month low
2012-06-28 02:09 GMT Eurozone leaders ready for summit – Rabobank
EURUSD : 1.25143 / 1.25149
DAILY WEEKLY MONTHLY
1.2566 | 1.2537 | 1.2504
1.2442 | 1.2413 | 1.2380
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Technicals are mixed, with better risk/reward elsewhere. Short term, near term and long term are providing opposing signals. Near term support lies at 1.2440; while resistance comes in at the 1.2575, both congestion levels. Longer term signals have all become bearish, including Stochastic, RSI and MACD supporting the bearish outlook. Supports are seen at 1.2442 and then at 1.2380. Whereas daily resistance levels are seen at the 21-DMA line at 1.2530 and then at the 10-DMA line at 1.2583.
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GBPUSD : 1.55878 / 1.55888
DAILY WEEKLY MONTHLY
1.5721 | 1.5681 | 1.5626
1.5531 | 1.5491 | 1.5436
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Technicals remain mixed with trading within a triangular consolidation pattern, resistance remains at 9 day MA (1.5650), and near term support is at the 21 day MA (1.5547). Short term signals are supporting a strong bullish run for the present, where as daily signals are the complete opposites offering a strong bearish outlook. Daily supports are seen at the 21-DMA line at 1.5540 and then at 1.5535. Whereas, resistance levels are seen at 1.5721 and then at 1.5797.
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USDJPY : 79.450 / 79.453
DAILY WEEKLY MONTHLY
80.420 | 80.145 | 79.908
79.395 | 79.125 | 78.885
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Oversold
MARKET ANALYSIS - Intraday Analysis
Technicals are mixed but shifting to a sell mode, with support over past two sessions seen at 9 day MA (79.53), with resistance at 50 day MA (79.75) over the same period. Daily supports are seen at 79.36 and then at 79.12. On the other hand, resistance levels are seen at 80.09 and then at 80.63. Yesterday's outlook remains in place today, a break above Tuesdays top and nearest resistance 80.62 would encourage further recovery of the dollar. Immediate support is Tuesday's bottom at 79.36, and a consistent break below could strengthen the yen further down towards next target 78.55.
Source: FX Central Clearing Ltd, (http://www.fxcc.com)