Stocks and Dollars

EURUSD: The EUR/USD is currently trading at 1.2887 levels. Euro continued with its weak trend against US dollar, ahead of the meeting to be held in Greece today, which will decide on the formation of the national unity government. If the government is not formed, then Greece might face new

The new week starts in a negative tone, as attempt to base at 1.2900 failed, with 20 day EMA maintaining downtrend from 02 May. Overnight gap lower opening and loss of 1.2900 handle, as well as test of initial target at 1.2875, Jan 2012/Jan 2012 lows, keeps the downside in

We have seen a break below the 1.0021 low, not by too much but there could still be risk of losses extending to the 0.9974-92 area. Momentum conditions are not strongly bearish at this stage so we should look at this area as a potential base for a recycling higher.

AUD/USD continues to test the downside option protection ahead of parity as the market grows increasingly concerned by the political turmoil in Greece.. Also aiding the downward move was JP Morgan’s profit result which was a loss of $2bio as credit derivatives continue to raise their ugly head. However, the

Dollar remains strong, but the Dollar index (80.37) is trading at its important Resistance which if holds can pull it back to 79.75-50. The Euro (1.2883) trading just above its important Support in 1.2880-50 region and a break below 1.2850 will open doors for further fall to 1.2660-30. Dollar-Yen (80.00)

GBPJPY Having weakened for a third consecutive week, GBPJPY looks to extend further declines in the new week. This will leave the cross targeting its key support located at 127.08 level with a breach aiming at the 126.53 level, its Mar 06′2012 low. Further down, support comes in at

Presumably, the impulse [5] of c of (y) of [ii] is close to completion. If this assumption is correct, after its completion we can expect a downward price movement in line with the wave formation i of (i).

Autochartist has recently identified the Clear Down Channel on the daily CAD/JPY charts. The overall Quality of this chart pattern is measured at the 6 bar level as a result of the below-average Initial Trend (rated at the 4 bar level), higher Uniformity (5 bars) and near maximum Clarity (9