Stocks and Dollars

Although aussie has retreated after faltering below recent record high of 1.1081 and consolidation below this level would take place, reckon 1.0900 would hold and bring another rise later. A break of said resistance would extend upmove in minor wave 5 to 1.1100 and then 1.1120, however, reckon 1.1195/00 (61.8%

Although the single currency did rebound after finding renewed buying interest around 112.03, euro failed to penetrate previous resistance at 113.57 and has fallen sharply from there, suggesting the rebound from 109.58 has ended there and consolidation with downside bias is seen but a daily close below 110.66 is needed

EURUSD Having continued to weaken on correction and threatening the 1.4282 level, EUR could face more bear threats in the days ahead. However, if it can hold above the 1.4242 and the 1.4142 level, upside risk will shape towards the 1.4578 level, its July 03’2011 high. An eventual violation

Political discord still reigns at the negotiation tables in the US. The Republican Kevin McCarthy announced last night that Mr Boehner’s plan would not come to the vote in the House of Representatives, because the Republicans could not muster votes enough among themselves to pass the plan. Voting had been

The yen and Swiss franc strengthened toward records against the dollar with USDCHF trading at 0.7997 after U.S. lawmakers delayed a vote on a plan to raise the debt limit to avert a default, boosting demand for refuge currencies. The franc extended its sixth monthly gain, the longest in 17

Yesterday, the euro extended the decline that started after the comments from German Fin Min Schaeuble. However, in a broader perspective, trading in this cross rate remains more or less erratic as event risk on both sides of the Atlantic remains high. USD/JPY is nearing the all-time lows.

EUR/USD is in a consolidation after the recent top at 1.4941 (May 4th, 2011). Technical indicators are descending and trading is situated below the 50- and 100-Day SMA but did not close under these levels which does not give confirmation for further decline.

Despite falling to another over 3-year low of 0.9407 earlier this week, as the greenback has recovered on profit-taking, suggesting minor consolidation would take place and recovery to 0.9545/50 (38.2% Fibonacci retracement of 0.9780-0.9407), however, reckon upside would be limited to 0.9590/00 (50% Fibonacci retracement) and bring another decline later.