Eur/Try broke of a daily wedge and made new yearly lows
Eur/Try broke of a daily wedge and made new yearly lows giving a bearish signal.
Greece draft released
- Greece to pledge 20% cut in minimal wage adn not to increase sales tax
- Pledges permanent spending cuts, accelerated labor and product market reforms
- Issue tenders for ports and airport in second half of 2012
German Deputy Finance Minister says little progress on Greece since 2010
- Governance in Greece is not up to standards
- It can be improved
- Talks between Greece and PSI is still difficult
The EURUSD has broken down on the comments.
Euro Area Finance Chiefs to Meet Tomorrow at 6PM in Brussels
AUDUSD tests trendline support
The AUDUSD is down testing trendline support at the 1.0765 level. The Reserve Bank of Australia surprised the market yesterday by not cutting rates. This led to new six month highs yesterday and again today. However, the price has since rotated back down to the support trnedline. A break has additional support at the 100 hour MA at the 1.0750 level currently. The price tested this moving average yesterday and on Monday. Each time the market found buyers against the level. Holding the level keeps the bulls in charge. The topside target – should the bullish bias remain- targets the 1.0868 level where there is good trendline resistance on the daily chart.
There was a newswire report today saying that new RBA member Heather Ridout aims to bring more attention to the high value of the AUD. In the Bloomberg story she said she sees the currency at 90-95 US cents.
ECB not decided on whether to contribute to Greek debt restructuring
This is according to EUROZONE sources.
Earlier today, there was chatter that the ECB would take a haircut on Greek debt. This comment suggests that they are not necessarily ready to do that.
Fed’s WIlliams says may have to purchase MBS if growth falters
- Buying MBS likely the best way to stimulate
- Inflation likely to run somewhat below 2%
- Unemployment rate likely to exceed 8% into 2013
- Likely to be well over 7% at the end of 2014
- Sees GDP 2.25% in 2012 adn 2.75% in 2013
With his expectation of growth at 2.25%, this is not enough to stimulate further declines in Unemployment. Hence if true, the Fed indeed would need to stimulate further. Bernanke and his supporters on the Fed, are looking at this uptick in the economy as a way to push momentum to where the economy’s growth is self sustaining. The threat is they do too much but I get the feeling that they want to err on the side of too much then too little. THis should be bearish for the dollar in the long run.
GBPUSD liquidates lower. Technical levels breached in the process
Fast break to the downside.
Stops were triggered below the 1.5840 level and the 100 hour MA did not even hold the decline. Longs are caught in the pair with EURGBP helping to keep the pressure on the GBP as it continues to move higher. Resistance in the GBPUSD is now at the 100 hour MA at the 1.58245 level. Look for traders to sell on corrective moves toward this level.
The 200 hour MA at the 1.5787 is the next target on the downside.
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