Stocks and Dollars

The upside resistance didn’t work but yesterday’s low stalled just below the 99.60 support at 99.53. This now looks critical. I’d still prefer one more rally but we must break above the 99.95-00 pivot resistance to provide the eneergy for extension through 100.39 towards yesterday’s 100.88 high. This is

AUD/USD like the majors and other risk currencies preformed well during the late Asia and European session as the market grabbed at the idea of a fiscal treaty of 25 European nations as a positive step for the current crisis and reports that the ECB was about to release a

The Euro (1.3072) failed to see a strong rise past 1.3200 and has dipped below 1.3100. With a Head-and-Shoulder pattern on the 4-hr chart, a test of 1.3000-2950 is possible now. Resistance is seen at 1.3100 and 1.3150. Dollar-Yen (76.20) is trading lower and flat. Intervention speculation is holding it

The Euro (1.3072) failed to see a strong rise past 1.3200 and has dipped below 1.3100. With a Head-and-Shoulder pattern on the 4-hr chart, a test of 1.3000-2950 is possible now. Resistance is seen at 1.3100 and 1.3150. Dollar-Yen (76.20) is trading lower and flat. Intervention speculation is holding it

Risk currencies outperformed during a mixed overnight session. Major asset classes were buoyed during London by the EU summit’s agreement of 25 countries to establish a fiscal discipline treaty, as well as an FT article the next ECB offering of cheap liquidity to banks could be several times as large

Manufacturing PMI data out of China at 12:00 AEST has the ability to turn risk sentiment back into positive territory, but we are not very optimistic. Current estimates see the official figure coming in at 49.6, representing only the second time that the figure would be in contraction territory since 2009.

The dollar is trading mixed and risk sentiment fell off the highs seen early in the session after weaker than expected U.S. economic data and renewed concerns about Greece. There has been a lack of positive news on Greek PSI despite officials having continually expressed their optimism on the progress

Asian Markets are set to open lower after U.S. stocks fell for a fourth day, the longest streak for the Dow Jones Industrial Average since August, as reports showed consumer confidence trailed economists’ projections and business activity cooled. Despite the session’s lacklustre performance, the Dow and S&P are still posted