European news dominated the markets last week
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| Action Insight Weekly Report | Markets Snapshot |
Spotlight to Shift from Eurozone to US FOMCEuropean news dominated the markets last week. There were all sorts of headlines flying around, including surge of chance of Greek default, dry-up of interbank liquidity, Moody's downgrade of French banks, Italy's talk with China for bond buying, Eurobond. And markets have been using all sort of excuses to cover short euro positions. Indeed EUR/USD's break of 1.35 was brief and the recovery extended for most of the week, until being exhausted by ECB's liquidity announcement. The lack of real progress from the EcoFin meeting in Poland then wrapped up Euro's week with a weak note. Technically, EUR/USD, EUR/GBP and EUR/JPY are all held by near term resistance of 1.4, 0.88 and 108 respectively and the common currency is vulnerable to another round of selloff this week. In other financial markets, DOW and FTSE 100 rebound strongly but are held inside familiar range. DAX remained the relatively weak index and breached 5000 psychological level even though followed others to recover towards the end of the week. US 10 year yield managed to rise back above 2% back bond's momentum was generally still strong. Gold extended recent choppy retreat and touched a lot of 1765.4 before recovering late Friday. CRB index's closed below 330 level suggested that the near term recovered has likely finished.Full Report Here... |    |
| Featured Technical Report | |
EUR/JPY Weekly OutlookEUR/JPY formed a temporary bottom at 103.88 last week and recovered. Such recovery might continue with 105.08 minor support intact, but even in case of another rise, we'd expect upside to be limited by 108.01 support turned resistance. Below 105.08 minor support will flip bias to the downside for 103.88. Break there will resume the whole decline from 123.31 to next medium term target at 102.42.Read more... |
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