Chip index SOX posts longest losing streak since 2008 as AI worries deepen
Daily Forex and Market Report
FOREXThe USD Index (79.80) is now below 80. We see support at 79.50 then again at 79.30.
The Euro rose sharply to 1.3053 and then retreated. We see strong resistance at 1.3045. Should the market move above that level, we might test 1.3080. There is support at 1.2950 and 1.2900-2870. USDJPY is still trading between 76.55-77.35.
USD/CHF is below 0.9300. We might test.9200 and even the strong support at 0.9150. Cable (might test the resistance at 1.5650 if the market stays above 1.5500. Aussie has retreated from1.0573, but we see strong support at 1.0450.
EQUITIES
The Dow lost 0.09% and the Nasdaq was off 0.09%. Essentially, a flat close. The markets might be waiting on the FOMC tomorrow.
Asian market are trading higher today. The Nikkei rose 0.37%, and Australia rose 0.29%.
COMMODITIES
Crude rose from its low of 97.40. We see good support at 98.00 and again at 97.50.
Gold is testing the resistance at 1680.
Bank Cuts Forecasts
The Bank of Japan cut back on its forecasts for the entire fiscal year of 2012. However, it kept its interest rate unchanged.The central bank in Japan reviled that the economy contracted between 0.3% and 0.4% instead of growing by 0.3% in Q4.
The Japanese Central Bank said they would be lowering growth expectations for 2012 while raising expectations for 2013. They feel that a strong Yen is dampening recovery. Still they hope the economy returns to normal growth at some point this year.
GDP is now expected to grow by 1.8%-2.1% in 2012. This was revised downwards from a 2.1%-2.4% projection.
For 2013, economic growth is predicted at 1.4%-1.7%. This was revised up from 1.3%-1.6%.
The Euro Recovers this Week
At the beginning of the week the EUR/USD traded lower. The market then rose sharply. The EUR/USD hit levels not seen since Jan. 4.We see resistance, strong resistance at 1.3076. A move above there might test1.3200 next.
Alternatively, we see support at 1.2875. However we see first levels of support at 1.2950 and 1.2985.
EUR/USD" title="EUR/USD" width="606" height="455" />The Cable Tops at 1.5601 yesterday
The GBP/USD tried to move higher yesterday and hit 1.5601, however the market closed lower at 1.5576. Today, the Cable has hit 1.5536 in Asia.We see strong support at 1.5270. Looking up we see the resistance at 1.5650 and the key level at 1.5700.
GBP/USD" title="GBP/USD" width="606" height="455" />
