USD/JPY – 78.00 Original strategy : Buy at 77.30, Target: 78.25, Stop: 76.95 Position: – Target: – Stop:- New Strategy :   Buy at 77.30, Target: 78.25, Stop: 76.95 Position: – Target: – Stop:- Despite dollar’s rebound from yesterday’s low of 77.62, as long as resistance at 78.29 holds, further consolidation would take placed and test of said support cannot be ruled out, break there would bring retracement of recent rise to previous support at 77.46, however, reckon 77.30 would limit downside and renewed buying...
EUR/USD – 1.3290 Original strategy : Sell at 1.3330, Target: 1.3220, Stop: 1.3365 Position: – Target: – Stop:- New strategy :  Sell at 1.3330, Target: 1.3220, Stop: 1.3365 Position: – Target: – Stop:- Euro’s intra-day breach of yesterday’s low at 1.3286 suggests the rebound from last week’s low of 1.3213 has possibly ended at 1.3442 yesterday and consolidation with downside bias remains for weakness to 1.3250 and possibly 1.3230, however, break of said support at 1.3213 is needed to confirm recent decline...
USD/CHF – 0.9228 Original strategy : Buy at 0.9200, Target: 0.9300, Stop: 0.9165 Position: – Target: – Stop:- New strategy :  Buy at 0.9200, Target: 0.9300, Stop: 0.9165 Position: – Target: – Stop:- Dollar’s intra-day rebound to 0.9246 adds credence to our view that low has been formed at 0.9140 yesterday and consolidation with upside bias remains for test of the Ichimoku cloud top (now at 0.9253), break would extend further gain to 0.9280 and possibly towards indicated resistance at 0.9308. Looking ahead, only...
Month-end flows, another SP round of downgrades and a Eurozone finances ministers meeting should ensure another choppy day. Stocks have opened lower for the first time this week and the euro was under pressure during the Asian session. Following the familiar pattern Eurozone bond yields are also higher. Italian 10-year yields hit 7.38% at one point today, although the 10-year -2-year yield spread has started to widen after inverting last week to the relief of Rome. 10-year yields are right now 19 basis points above 2-year yields, which still indicates stress...
Worries continued to dominate investor’s behavior on doubts euro area leaders would fail to ease the debt crisis and after Standard Poor’s downgraded 15 banks. It seems that investors waited for firmer measures by euro area finance minister in their first day meeting in Brussels yesterday. They agreed to expand the European rescue fund yet they did not specify by how much. People familiar with the matter said that the hoped expansion to 1 trillion euros or 2 trillion euros is not going to happen and that the maximum would be between 500 billion...
