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MARKET UPDATE 27.07.2012

2012-07-27 05:37 GMT

ECB's Draghi's vow to save the monetary union sends markets climbing.

Concerns are also growing about global growth. The IMF said in a report today that China's slowing economy faces significant downside risks and relies too much on investment. While the economy “seems to be undergoing a soft landing”. US stocks advanced ahead of a report that may show demand for new homes rose in June and amid concern Spain may need a full bailout as Europe's debt crisis worsens. Broadcom Corp rose 2.6% after it forecast third- quarter sales that may beat analysts' estimates. And as European Central Bank President Mario Draghi said policy makers will do everything in their power to ensure a survival of the Euro.

Apple Inc. fell 4.7% in Germany after reporting profit and sales that missed analysts' projections. Netflix Inc. dropped 17% after it raised doubts about whether it can meet its user-growth targets this year. Japanese stocks fell, with the Topix Index posting its biggest four-day drop since August, as the Yen traded near an 11-year high against the euro amid concern Europe's debt crisis is worsening. The MSCI Asia Pacific Index dropped 1% today as Greece's creditors met to assess how far the debt-stricken nation has strayed from bailout terms Weakness in the euro became more evident throughout the day, as investors lost confidence in any results from the EU Summit and their grand plan, markets want action to help correct today's problems, not plans for the future, when their maybe no EU or euro.

Read More

2012-07-27 12:00 GMT

Germany - Consumer Price Index (Jul)

2012-07-27 12:30 GMT

US - Gross Domestic Product Annualized (Q2)

2012-07-27 12:30 GMT

US - Personal Consumption Expenditures Prices (Q2)

2012-07-27 13:55 GMT

US - Reuters/Michigan Consumer Sentiment Index (Jul)

2012-07-27 04:22 GMT

EUR/USD, hangover sub-1.2300

2012-07-27 02:47 GMT

GBP/JPY rally interrupted by 21 EMA

2012-07-27 02:07 GMT

Moving to period of EUR/USD weakness, rising global risk premia - Nomura

2012-07-27 01:40 GMT

US Q2 GDP weakness should be confirmed - Standard Chartered

AUDUSD
1.04261 / 267
NZDUSD
0.80271 / 282
USDCHF
0.97696 / 705
USDCAD
1.00773 / 779
GBPJPY
122.704 / 709
EURCHF
1.20103 / 107
GOLD
1616.89 / .34
SILVER
27.60 / .64
EURUSD 1.22932 / 1.22935
DAILY WEEKLY MONTHLY

1.2577

1.2453

1.2366

1.2155

1.2031

1.1944

SUMMARY

Neutral

TREND

Up
trend

MA10

Bullish

MA20

Bullish

STOCHASTIC

Oversold

 

MARKET ANALYSIS - Intraday Analysis

Technicals are bearish, but candlesticks suggest momentum is turning. The close at 1.2288 opens up a test to 1.2455; however the risk reward remains poor. The anticipated reversal has materialized in the EURUSD and we can now focus on how far the rally is likely to extend, the 1.23 level is an important psychological number. Supports are seen at 1.2200, 1.2118 and then at 1.2100 and, resistance levels are seen at 1.2334 and then at 1.2401. Yesterdays movements have indicators and oscillators behind, this is a good sit it out situation.

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GBPUSD 1.56847 / 1.56850
DAILY WEEKLY MONTHLY

1.6034

1.5879

1.5781

1.5528

1.5373

1.5275

SUMMARY

Up

TREND

Up
trend

MA10

Bullish

MA20

Bullish

STOCHASTIC

Neutral

 

MARKET ANALYSIS - Intraday Analysis

Technicals are well mixed, between short term, near term and long term. Support is expected at the July 12th low at 1.5394, with resistance at the 200 day MA 1.5746. The outlook shows a downward movement towards the 1.5550 zone of support. A rise above 1.5700 may lead to a test of the 1.5730 resistance level. Supports are seen at 1.5600, 1.5500 and then at 1.5458 and resistance levels are seen at 1.5738 and then at the 200-DMA line at 1.5747.

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USDJPY 78.231 / 78.233
DAILY WEEKLY MONTHLY

79.170

78.785

78.445

78.105

77.770

77.315

SUMMARY

Down

TREND

Down
trend

MA10

Bearish

MA20

Bearish

STOCHASTIC

Oversold

 

MARKET ANALYSIS - Intraday Analysis

Technicals continue to read bearish and suggest further downward movement, despite consolidation in the past two sessions. Trading is in the narrow range of 78.243 and 78.054 at the time of writing. The pair is likely to fluctuate within the resistance level of 78.404 and the support level of 77.942. After the break of 79.00 the short-term bias is to the downside towards the 77.65 level. In the long term, however, we expect a bullish scenario: a test of the 83.00 resistance level. Supports are seen at 77.94/65 and then at 77.36 and resistance levels are seen at 78.28 and then at 78.54.

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