Daily outlook - 9th May 2012 (00:30GMT)

Anthony Darvall

CURRENCY TRADING SUMMARY 9th May 2012

Written by Anthony Darvall

U.S. Dollar (USD)

U.S. Dollar Trading (USD) the mood soured overnight in the US session and into Wednesday’s Asian session as rhetoric of the Greece far left politicians suggested the recent bailouts may be torn up and Greece forced to exit the Eurozone. The EUR/USD has broken below 1.3000 once again and Gold is falling heavily as USD and cash become king. Looking ahead, FOMC Member Pianalto.

Euro (EUR)

The Euro (EUR) focus has swung back to the Europe and the Greece elections continuing to have negative effects on the market. The Greece political stalemate is unlikely to end shortly and the uncertainty will likely lead to more selling. Major support is seen at 1.2950 and we are poised to test this level this session.

Japanese Yen (JPY)

The Japanese Yen (JPY) risk aversion made the safe haven in the Yen the strongest currency in the market back under Y80 on the major and the crosses punching lower led by the EUR/JPY. AUD/JPY is another closely watched risk trade and is close to the key Y80 level.

Australian Dollar (AUD)

Australian Dollar (AUD) the AUD/USD is being sold aggressively in the last 24 hours with the stock markets and the Greece debacle giving traders the green light. The RBA rate cuts is likely to see the AUD/USD test 1.000 and we could see this as soon as today given the heavy sales in Asia.

Currency

Sup 2

Sup 1

Spot

Res 1

Res 2

EUR/USD

1.2700

1.2950

1.2980

1.3080

1.3130

USD/JPY

79.53

79.64

79.75

80.00

80.60

GBP/USD

1.6077

1.6100

1.6140

1.6250

1.6400

AUD/USD

1.0000

1.0050

1.0080

1.0230

1.0350

XAU/USD

1550.00

1580

1594

1600

1611

OIL/USD

95.00

 

96.50

96.70

98.50

100.00

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