Greece Receives EU Bailout Confirmation
CURRENCY TRADING SUMMARY – 12th April (00:30GMT)
U.S. Dollar Trading (USD) with US stocks trading above 11000 for the first time this year we saw the USD on the back-foot as the safe haven was sold against riskier Currencies. This theme continued on Monday morning with the weekend EU Greece Bailout news causing widespread gaping with most currencies. In US stocks, DJIA +70 points closing at 10997, S& P +7 points closing at 1194 and NASDAQ +17 points closing at 2454.
The Euro (EUR) on Sunday, a meeting of EU finance ministers saw the signing off of a 30BN loan package at better than market rates at around 5%. Germany relented on the interest rate that Greece would receive and the door was also left open for more funds via the IMF. The market bought the Euro aggressively on Monday morning with the market trading above 1.3600. Overall the EUR/USD traded with a low of 1.3341 and a high of 1.3494 before closing at 1.3492.
The Japanese Yen (JPY) was sold at the start of the European session as the crosses lifted the major but in the end the weakness of the USD against the EURO saw the USD/JPY back towards Y93.00. EUR/JPY broke above Y125 and AUD/JPY closed above Y87. Overall the USDJPY traded with a low of 93.12 and a high of 93.78 before closing the day around 93.16 in the New York session.
The Sterling (GBP) broke above 1.5320 in early Europe as the market finally broke out the recent range to the topside. EUR/GBP showed the Pound was outpacing the Euro with a new low at 0.8720 before bouncing in the Weekend on mounting rumors (correct) of an EU Greece bailout. Overall the GBP/USD traded with a low of 1.5269 and a high of 1.5391 before closing the day at 1.5367 in the New York session.
The Australian Dollar (AUD) tracked the Euro higher to break above 0.9330 for fresh year highs. Supporting the pair on dips was the rally in Gold, stocks and Yen crosses. Sentiment towards the Aussie is decidedly bullish as the markets risk appetite for high yielding currencies places it at the top of the list. Overall the AUD/USD traded with a low of 0.9267 and a high of 0.9344 before closing the US session at 0.9325.
Oil & Gold (XAU) traded above $1160 as the rallied continued with very little pull back. Overall trading with a low of USD$1149 and high of USD$1165 before ending the New York session at USD$1161 an ounce. Crude Oil bucked the trend sticking close to the $85 a barrel level. WTI Oil Closed -$0.47 at $84.92 a barrel.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3341 |
1.3500 |
1.3645 |
1.3741 |
1.3819 |
|
USD/JPY |
92.25 |
92.76 |
93.25 |
94.27 |
94.79 |
|
GBP/USD |
1.5044 |
1.5130 |
1.5435 |
1.5477 |
1.5575 |
|
AUD/USD |
0.9166 |
0.9224 |
0.9345 |
0.9406 |
0.9476 |
|
XAU/USD |
1132.00 |
1143 |
1166.00 |
1169 |
1183.00 |
|
OIL/USD |
84.50 |
85 |
85.40 |
86 |
88.00 |
Euro – 1.3645
Initial support at 1.3500 (Apr 9 high) followed by 1.3341 (Apr 9 low). Initial resistance is now located at 1.3741 (Mar 18 high) followed by 1.3819 (Mar 17 high)
Yen – 93.25
Initial support is located at 92.76 (Mar 31 low) followed by 92.25 (0.382 of 88.14-94.79). Initial resistance is now at 94.27 (Apr 7 high) followed by 94.79 (Apr 5 High).
Pound – 1.5435
Initial support at 1.5130 (Apr 6 low) followed by 1.5044 (Mar 31 low). Initial resistance is now at 1.5477 (Feb 24 high) followed by 1.5575 (Feb 23 low).
Australian Dollar – 0.9345
Initial support at 0.9224 (Apr 8 low) followed by the 0.9166 (Apr 6 low). Initial resistance is now at 0.9406 (Nov 16 high) followed by 0.9476 (Jul 31 ’08 high).
Gold – 1166
Initial support at 1143 (Apr 8 low) followed by 1132 (Apr 7 low). Initial resistance is now at 1169 (Dec 8 high) followed by 1183 (0.764 of 1126.56-1044.85).
Oil – 85.40
Initial support at 85.00 (Intraday Support) followed by 84.50 (Intraday Support). Initial resistance is now at 86.00 (March high) followed by 88.00 (Intraday Resistance).
