The USD and JPY cylinders are burning thru the markets again, with USD holding an edge of JPY due to the tensions between the 2 Koreas. But this may be a shortlived calm before the next JPY storm, paving way for 108 in EURJPY, 127.80 in GBPJPY and 83.60 in CADJPY. USDJPY still trades w/in the 90.50-89.80 range w/ risks for 89.10, while EURUSD counts the days before breaching below 1.2130s after the prominent failure to regain 1.2630. USDCAD's break of 1.0660s eyes 1.0730-50. And as we reiterated on CNBC an hour ago, AUDUSD sub 0.80 is quasi inevitable before 0.78 ultimate target emerges.
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Here you go guys, the FTSE through the eyes of an elliottician.Key Points:small degree wave (iv) looks like it may be complete...this means we expect downside to make a new low (bellow fridays low)...this should be short lived and buyers are expected to jump on and rally hard.Resistance level is 5227. This must NOT break BEFORE we get a new low towards 4920-4900...After we get a new low, this is no longer key resistance and I think will be broken as the bulls take the market up.Hope this provides some ideas for you guys, not 100% how it will work out yet...but lets watch and see. :)Happy Trading
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STRONGER THAN EXPECTED 7.6% increase in April US existing home sales was no surprise considering the solid rise in pending homes sales for Mar and Apr. The figures highlight the divergence between stabilising US macro fundamentals and deteriorating market sentiment. But nothing has changed from the Eurozone-aid perspective or a US regulatory stance towards US banks/derivatives. The 200-day moving average support for the Dow-30 (10267) and S&P500 (1102) has now become an immediate resistance for the indices after having served as a support.EURCHF retraces more than 38% of the 600-pip post-intervention bounce from 1.4000 to 1.4583) as EUR comes under broad pressure and CHF rallies from stabilizing risk positioning. 1.4290 & 1.4230 emerge as the next support level in the absence of the SNB.
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AUSSIEs WOES REMAIN as long as equities present NO better reason for a rebound other than Goldman Sachs settling with the SEC. Interim resistance stands at 0.8330s, but more immediate target stands at 0.8250, followed by 0.8190 and 0.80 as warned in last weeks article http://bit.ly/b899jl 0.78 remains the ultimate target in the event of protracted equity losses. Drying liquidity remains a challenge for major international banks as USD-3 month LIBOR doubles to 0.50% in just 8 weeks, coupled with the 9-month highs in the TED spread (proxy for 3-month LIBOR spread over 3-month Treasury yields). ASHRAF's SINGAPORE SEMINAR TOMORROW (for NON-CMC Markets Cients) http://bit.ly/aXqL1h 731 Registered so far.
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EURUSD UNABLE TO RECOVER the $1.2620 trendline resistance from May 2 thru May 10 after Spains central bank seized savings bank CajaSur, which lost EUR 426 mln in revenues last year. The bank has 486 branches but represents 0.6% of the nations banking assets. EUR is vulnerable to $1.2460, while any renewed deterioration in risk assets risks calling up $1.2420. Upside capped at $1.2590. Register for ASHRAF's SINGAPORE EVENT ON TUESDAY http://bit.ly/aXqL1hRead more…
Bottoming tail on Cable (not favourable close) on Cable weekly and we are also getting some divergence. Daily Chart has divergence in the indicator too. we may just have made a pivot for now.
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