U.S. Dollar Trading (US) US stocks fell sharply unimpressed with jobs talk from Obama and as Greece came back into the headlines after ECB board member Stark resigned in opposition to the ECB bond buying operations. The USD is gaining broadly as the safe haven of choice after CHF and YEN intervention fears propelled it to the top of the list. In US stocks, DJIA -303 points closing at 10992, S&P -31 points closing at 1154 and NASDAQ -61 points closing at 2467. Looking ahead, FOMC Member Fisher speaks.
The Euro (EUR) articles emerged talking about German officials looking to sure up local banks in the event that Greece goes bankrupt. EUR/USD slumped under 1.3700 with little support from crosses except the EUR/CHF which continued to hold above 1.2000. August German CPI increased to 2.4% vs. 2.3% previously. Looking ahead, Italian Industrial Production forecast at 0.2% vs. -0.6% previously.
The Japanese Yen (JPY) the USD/JPY moved lower in the US session on sharp EUR/JPY selling after talk of a Greece default swept the market. Support was found at Y77 on the major and under Y106 on the EUR/JPY which is now targeting Y100 as potential level the BOJ may intervene similar to the Swiss.
The Sterling (GBP) The GBP was under pressure against the USD but held up well against most risk currencies with EUR/GBP selling supporting and GBP/AUD sharply higher. Cable found support at 1.5850 but a downtrend looks to be forming and if the situation in Europe deteriorates then 1.55 is possible in coming sessions.
The Australian Dollar (AUD) The AUD/USD was already on a fragile footing after weak jobs data on Thursday and the sharp risk sell off sent the commodity currency below 1.0500 and AUD/JPY sharply lower towards the key Y80 pivot. The outlook is linked to the Eurozone debt crisis and another potential collapse is keeping traders on their toes in the coming sessions.
Oil & Gold (XAU) Gold was supported on the EU debt issue but the USD is also receiving plenty of support and this kept the precious metal range trading. Crude Oil slumped with US stocks to back under $87 a barrel.
Pairs to watch
EUR/USD everyone watching Greece debt markets today?
AUD/USD will the risk currency collapse if Greece defaults?
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3585
Initial support at 1.3525 (Feb 22 low) followed by 1.3300 (Big figure support). Initial resistance is now located at 1.3937 (Sept 9 high) followed by 1.4149 (Sept 7 high)
Yen - 77.50
Initial support is located at 77.07 (Sep 7 low) followed by 76.43 (Aug 31 low). Initial resistance is now at 77.86 (Aug 9 high) followed by 78.47 (Aug 8 high).
Pound - 1.5855
Initial support at 1.5781 (Jul 12low) followed by 1.5752 (Jan 25 low). Initial resistance is now at 1.6083 (Sept 8 high) followed by 1.6203 (Sep 5 high).
Australian Dollar - 1.0400
Initial support at 1.0363 (Aug 22 low) followed by the 1.0200 (Big Figure Support). Initial resistance is now at 1.0500 (Big Figure Support) followed by 1.0666 (Sept 5 high).
Gold - 1852
Initial support at 1805 (Sept 8 low) followed by 1757 (Aug 29 low). Initial resistance is now at 1885 (Sept 9 high) followed by 1921 (Sept 6 high).
Oil - 86.00
Initial support at 85.00 (Intraday Support) followed by 83.00 (Intraday Support). Initial resistance is now at 88.00 (Intraday resistance) followed by 90.00 (Intraday Resistance).
Written by Anthony Darvall