FOREX:
The Euro (1.3440) rose to 1.3533 yesterday. It has since come off from there. We might see range trading at 1.33-35. We might even test 1.36 in the coming days. The Cable (1.5682) and Aussie (1.0201) also rose well yesterday. Not very long ago (23-Nov, last Wednesday) that Aussie saw a low of 0.9663. That happens to be nearly a 6.9% gain. In one week alone.
USD/JPY (77.68) fell to 77.28 yesterday. The Swissy (0.9146) also rose to 0.9065.
Markets:
The Dow (12045.68) was up 4.24% and the NASDAQ (2620.34) was up 4.17%. The Dow has resistance at 12150-200.
All the Asian markets are trading sharply higher. Nikkei (8612.00) is up 2.10%, Shanghai (2407.90) is up 3.19%, Hong Kong (19012.43) is up 5.69%, Taiwan (7144.68) is up 3.48% and Australia (4276.80) is up 2.20%.
COMMODITIES:
Crude (100.59) has risen above 100 once might end up testing 103.
Gold (1751.90) is trading above 1750 and has resistance at 1760, a break above might test 1800 once again.
Daily Forex Technical Commentary
Euro
:
Initial support is at 1.3395 followed by 1.3370 (Oct 6 low). Initial resistance is at 1.3530 followed by 1.3570
Yen:
Initial support is at 76.34 (76.4% retrace of 75.35-79.53) followed by 77.10. Initial resistance is at 77.95 followed by 78.15.
Cable:
Initial support is at 1.5625 followed by 1.5535. Initial resistance is at 1.5810 followed by 1.5880.
Aussie:
Initial support is at 1.0087 followed by the 0.9935. Initial resistance is at 1.0340 followed by 1.0400
Gold:
Initial support is at 1725 followed by 1711. Initial resistance is at 1755 followed by 1760.
Oil:
Initial support is at 99.60 (Intraday Support) followed by 98.90 (Intraday Support). Initial resistance is at 102.00 (Intraday resistance) followed by 102.50 (Intraday Resistance).
Asian Markets See a Sharp Rise
Asian shares joined in a global rally Thursday. They ended up soaring as investors welcomed central bank moves to slash dollar credit costs in Europe and ease monetary conditions in China.
Hong Kong’s Hang Seng Index jumped 5.9%, while the Shanghai Composite Index soared 3.5%.
Japan’s Nikkei Stock Average was up 2.2%, South Korea’s Kospi was up 4.2%. Australia’s S&P/ASX 200 index added 2.6%.
US and European stocks ended Wednesday with similarly strong gains, with the Dow Industrial seeing the largest margin since 2009.
The US Federal Reserve and the central banks of the Euro zone, Canada, the U.K., Japan and Switzerland announced Wednesday that they agreed to reduce the cost of offering dollar financing through swap arrangements.
Chinese financials got an additional boost after the People’s Bank of China cut its reserve requirement ratio for large banks for the first time since December 2008.
Daily Forex Analysis: EURUSD Trades above 1.35
The EUR/USD has been consolidating since the start of the week. The market is moving above 78.6% retracement at 1.3490. It has broken the 1.35 psychological resistance level.
This sharp move also pushed above the 200SMA, the 1.34 resistance cluster.
The strength of today's rally suggests a bottom might be forming. Looking at the 4 hour chart, we still have one more key resistance to break to test further upwards. We are still trading within a declining channel, with resistance near 1.3550. Then we have a resistance at the 1.36 handle, which is also near 38.2% retracement.
If the market does not break back below 1.3430, we might move up further. We still have the 1.3730, 50% retracement and 1.3850, 61.8% retracement levels looking up.
Therefore, the short-term counter-trend bearish level from the channel resistance at 1.3550 should be limited to 1.3430 for now. A break below 1.3430 could negate and give pause.
Daily Forex Analysis: Cable Rises Sharply Above 1.5700
The GBPUSD rose sharply yesterday after the joint intervention by China and some developed countries central bank to easy liquidity by cutting RRR and swap rates by 50bps.
The market broke above 1.5700. It stopped at 1.5778 and now struggling around 1.5700 which is the 38.2% Fibonacci retracement of 1.6165 - 1.5422 which is visible on the 4 hour chart below.
We might test 1.5800 - 1.5875 resistance area next.
Looking down, immediate support is seen at 1.5650. A break below that might lead the market to a neutral zone but we need a break back below 1.5600 - 1.5570 to maybe test1.5500 - 1.5422 support area.
Mixed Yield Results For French Bond Auction
France on Thursday sold €4.3 billion ($5.8 billion) of government bonds, with 5 and 30 year borrowing costs rising. This while 10 and 15 year yields declined.
France's debt agency said it sold €595 million of five year bonds at an average yield of 2.42%. Bids exceeded supply by 4.4 times. A previous five-year auction produced a yield of 1.93%. France sold €1.6 billion of a 10 year bond at an average yield of 3.18%, down from 3.22% in a previous sale, while an auction of €1.08 billion of 30 year bonds saw the yield rise to 3.94% from 3.72%.
The Treasury also sold €1.1 billion of 15-year bond, producing a yield of 3.65%, down from 3.77% in November.