Weekly Wrap up Rebroadcast
Weekly Wrap up with Greg and Shawn from April 29th 2011 Watch the Rebroadcast (Video Pending)
Canada Flaherty says GDP still on track for strong gains in 2011
Although GDP was weak today, the 2011 GDP is still on track for 2.9-3.0%.
Rebroadcast of the FXStreet webinar
To review the rebroadcast of the FXStreet webinar on FEAR in Trading click on the following link:
http://www.fxstreet.com/webinars/sessions/session.aspx?id=703a7087-4d36-477f-b617-286f20d4fd48
Gold moving back higher. Reverses the dollars gains
With
Gold making yet again new highs the dollar correction slows.
The longer term next target comes in at 1571.54.
University of Michigan final revision comes in at 69.8 vs 70.0
Meanwhile the April NAPM came in at 68 vs 63.0 expected. Although stronger this does not carry the weight of other regional indices.
EURUSD breaks trendline support
The downside trendline was broken in the EURUSD and should lead to further corrective pressure. The trendline will now be resistance for the pair. That level comes in at 1.4757.
The Chicago PMI has come out at 67.6 vs expectation of 68.2. This should lead to a lower dollar. If the EURUSD is to continue to correct, staying below the trendline is needed. The next targets is the 1.4798 and the 1.4769 levels
USDJPY holds 81.12 and moves higher
The USDJPY tested the low levels from the post Central Bank intervention period and has moved higher. The holding of this level should solicit some covering action from the sharp two day fall in the pair. However, the comments from the Fed/Bernanke continue to weigh on the dollar longer term so be aware for limited upside potential. The 81.62 and 81.74 where the 100 hour MA and the 38.2% of the move down is located.
The JPY is a special currency in that the economic situation is likely to be weak over the 1H of 2011 as the country rebounds from the effects of the earthquake/tsunami devastation. A stronger JPY is not what the BOJ was looking to achieve. The good news is exporters in Japan, had the opportunity to sell USDJPY at higher levels on the move up to the 85.50 area. This allowed them to repatriate funds at rates that were congruent with the highs going back to August 2010. They had a chance and it appears that the move down from the high was just that…
It is unlikely the BOJ wants the USDJPY to move too quickly to the downside but the intention of the buying may have served its purpose and it is up to the market to decide now.
NZDUSD surges higher after failing to satisfy the shorts
The NZDUSD has moved back higher after holding support against the November 2010 low. The move to the low also breached the 200 hour MA (see green line in the chart below) but quickly rejected the move. Today,the pair has found good buying that has taken the pair back above the 100 hour MA (blue line in the chart below). The next target is the 0.8082 and the 0.8104 level.
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