Stocks and Dollars

Mixed picture on currencies. Its not a straight sell USD or buy USD trade these days it seems. The Euro (1.4492) and the Aussie (1.0693) are strong, but the Yen (80.74) and Swiss Franc (0.8412) are relatively weak. The Pound (1.6035) continues to underperform, but is hovering around the 200-day MA.

EUR/USD Today’s support: – 1.4442. 1.4378 and 1.4345(main), where correction is possible. Break would give 1.4312, where correction also may be. Then follows 1.4280. Break of the latter would result in 1.4248. If a strong impulse, we would see 1.4219. Continuation will give 1.4198.

Yesterday was almost what I was looking for but that dip to 80.26 was on the extreme side of extreme… If this is to continue its push higher we’ll need a swift break above the 80.85-90 pivot area to retest the 81.26 high… and above there should then imply extension

After touching the intraday high of 1.4538 in the mid-session of NY trading, (3 week high) the euro gave up its gains to 1.4468 as many investors with long positions took their profits and as the dollar gained over the major currencies.

GBP/NZD has just completed the high Quality Falling Wedge chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is measured at the 7 bar level as a result of the sharp Initial Trend (measured at the maximum 10 bar level), significant Uniformity (7 bars)

Today’s economic data calendar is dominated by purchasing managers’ surveys for the month of June. Following the release of Chinese data overnight, the key releases are in the US and UK. In the US, we look for ISM manufacturing report to register a slower pace of expansion. Our forecast stands

Today fundamental data came as supportive for the Japanese economy due to the unemployment rate unexpectedly declined during May; means the economic recovery cycle in Japan was on the track before the March quake and still gives forward signs after the quake at the labor market outside of the earthquake

Mixed picture on currencies. Its not a straight sell USD or buy USD trade these days it seems. The Euro (1.4492) and the Aussie (1.0693) are strong, but the Yen (80.74) and Swiss Franc (0.8412) are relatively weak. The Pound (1.6035) continues to underperform, but is hovering around the 200-day MA.