forex market insight 24 june 2011

8/6/2019 Forex Market Insight 24 June 2011

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Market Insights 24 June 2011

Heavy selling seen in early trade overnight before news of an agreement on Greece produces reversal

Late buying seen in euro, pound, as they gain around 100 pips on Greek news

Aussie tries to break below 1.0480 but bounces strongly from lows

Crude oil and gold both plunge as key countries release oil reserves

Dow finishes 60 points lower after being down as much as 200 points, produces bullish reversal signalToday, we have central bank talks from AUD at 1.30pm, UK at 7.30pm, and US data at 10.30pm

Headlines

AUD/USD

XAU/USD

Resistance

1.0620

Support

1.0580Market Sentiment

Bearish

Like many other instruments, the Aussie is at a crossroads this morning, with the bearish picture clouded by last night’ssharp reversal. The rejection of lows below 1.0480 could be seen as bullish, but the overall trend remains lower, and traderswill be looking to take new shorts up around 1.0600.

The tone for gold has clearly shifted to bearish after the US Fed’s interest rate decision 36 hours ago. Today, we could see ashort-term retracement higher, with a move higher from support at 1510 most likely. However, traders will be focusing onthe short side, with any break below 1510 signalling a continuation of down move.

Resistance

1535

Support

1510Market Sentiment

Bearish



EUR/USD

GBP/USD

USD/JPY

The USD/JPY now appears to be settled in a new trading range between 80.40 and 80.70. Traders will be looking for longfrom 80.40 or on a break of 80.80.

The GBPUSD saw sharp losses overnight with the pair dropping below the all important 1.6000 barrier. The pound then saw arecovery in line with other risk instruments, and this has brought the pair back up to resistance. Traders are likely to belooking for shorts from around 1.6025 with targets back to 1.5940.

The Euro produced a small bounce overnight after the IMF and EU were reported to finalised terms for the Greek bailout. Thmove higher has terminated close to 1.4300 and we could see the pair reverse lower from these levels. The market haidentified support around 1.4100, with a break of 1.4080 seen as bearish.

Resistance

1.4250/300

Support

1.4080/130Market Sentiment

Bearish

Resistance

1.6025

Support


Bearish

Resistance

80.70/80

Support

80.35/40Market Sentiment

Bullish



SILVER

USD/CHF

GBP/JPY

The GBP/JPY remains under severe downward pressure as expectations of a UK rate rise are wound back. Overnight, the pamade new three-month lows. Traders continue to look for new opportunities to short, with initial resistance seen at 129.40.

The dollar-Swiss is back at support and there is an expectation the greenback will push higher from here. Initial targets arback to 85.50 and a move above that level will really see the bulls come out to play.

Silver has shifted back to bearish after dropped back below the 36.00 level. Silver fell in sympathy with gold on the reaction tthe Fed’s move to wind back stimulus. From here, resistance is seen at 35.40 and 36, with downside targets to 34.50.

Resistance

36.00

Support


Bearish

Resistance

85.50

Support


Bullish

Resistance

129.40

Support


Bearish



AUD/JPY

OIL

Economic Calendar

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F/Cast Last F/Cast Last

» AUD: RBA Assist Gov Lowe » GBP: BOE Gov King Speaks

» EUR: German info Business 113.6 114.2 » USD: Core Durable Goods 1.0% -1.6%

» EUR: Italian Retail Sales -0.1% -0.2% » USD: Durable Goods orders 1.6% -3.6%

» EUR: EU Economic Summit » USD: Final GDP q/q 1.9% 1.8%» » »

Oil was sharply lower after night after a coordinated effort by major nations to release oil reserves. This resulted in oil

falling more than $3 per barrel in a couple of hours and has now switched the focus to the downside. Traders will belooking for shorts around $93 with targets to 89.70.

The Aussie-yen continues to remain trapped in this large descending triangle with the bears still dominating this pair. All eyesare on support at 84.20 with a break of this level extremely bearish.

Resistance

93.30Support


Bearish

Resistance

85.20/30Support


Bearish

forex market insight 24 june 2011

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