Market News
Market News
20-24 May: The dollar continues to motor north, with plenty more to come in the weeks ahead.
Weekly FX outlook is provided by FX Charts. If you would like to receive this report in full on a daily basis you can subscribe to the FXCharts mailing list by going directly to www.FXCharts.com.au.
Another day, another new high for global equities on Friday. One day it is going to get very ugly, but who knows when?! Certainly not me! In FX land, the Dollar rules and the currencies are generally wilting under its strength, led down by the Yen and the commodity bloc, and it looks as though there is plenty more of this to come. Public Holidays in Europe on Monday may mean a quiet start to the week.
Read the full FXCharts Weekly Outlook here or scan the market summary below.
| CURRENCIES | |||||
| EUR/USD: 1.2838 | Outlook | ||||
| Res | 1.2880 | 1.2940 | 1.2990 | The dollar remains in charge and the Euro, having tested levels just below 1.2800 on Friday looks rather precariously placed to resume its slide in the coming week…read more | |
| Sup | 1.2795 | 1.2775 | 1.2740 | ||
| USD/JPY: 102.80 | Outlook | ||||
| Res | 103.50 | 104.00 | 104.50 | In early NZ trade, $/Yen has been marked down quite sharply after the Japanese Finance Minister commented that the “Yen’s excessive strength has been largely corrected and that further weakness could be harmful”. This could be a bit of a game changer. …read more | |
| Sup | 103.00 | 102.70 | 120.30 | ||
| GBP/USD: 1.5170 | Outlook | ||||
| Res | 1.5200 | 1.5235 | 1.5300 | Cable did as we expected on Friday and headed lower, taking out various supports below 1.5200 in trading down to 1.5157, almost reaching our 1.5120 target (61.8% of 1.4830/1.5605) …read more | |
| Sup | 1.5155 | 1.5120 | 1.5060 | ||
| USD/CHF: 0.9722 | Outlook | ||||
| Res | 0.9760 | 0.9800 | 0.9870 | The dollar has once again tried to take out the important Fibo resistance at 0.9745, reaching 0.9760 on Friday, before reverting to close below it at 0.9722….read more | |
| Sup | 0.9700 | 0.9650 | 0.9580 | ||
| AUD/USD: 0.9727 | Outlook | ||||
| Res | 0.9740 | 0.9800 | 0.9850 | The poor Aud got a reminder of the good old days last week and since the better jobs data of the previous week that took it to 1.0253, it has been a vertical slide to 0.9710 …read more | |
| Sup | 0.9710 | 0.9660 | 0.9580 | ||
| NZD/USD: 0.8065 | Outlook | ||||
| Res | 0.8100 | 0.8160 | 0.8200 | The Kiwi fared even worse than the Aud last week and closed smack on our target of last week at 0.8065 (50% pivot of 0.7450/0.8672) …read more | |
| Sup | 0.8060 | 0.8000 | 0.7970 | ||
| Commodities / Indices | |||||
| ASX SPI: 5210 | Outlook | ||||
| Res | 5220 | 5240 | 5258 | The SPI has had a big week but finished pretty much in the middle of its 5156/5258 range …read more | |
| Sup | 0000 | 0000 | 0000 | ||
| S+P Futs: 1664 | Outlook | ||||
| Res | 1670 | 1680 | 1690 | The Fed inspired bubble shows no sign of ending, with the S+P closing at new all time highs. Don’t argue with it …read more | |
| Sup | 1650 | 1640 | 1630 | ||
| DJI Futs: 15320 | Outlook | ||||
| Res | 15350 | 15400 | 15500 | As with the S+P, I prefer to remain sidelined, but the Dow looks as though it is heading to 15500. Bids should now be seen at 15200 although it looks unlikely that we are even going to see that level. I would raise stops again, now to 15100….read more | |
| Sup | 15300 | 15250 | 15200 | ||
| GOLD: 1360 | Outlook | ||||
| Res | 1380 | 1390 | 1400 | As the dollar continued to rally on Friday, commodities remained under pressure and Gold was no exception…read more | |
| Sup | 1350 | 1340 | 1320 | ||
| SILVER: 22.25 | Outlook | ||||
| Res | 22.50 | 23.15 | 23.50 | Silver is perched precariously above its April 22.04 low but won’t be there for very long if the dollar strength continues. …read more | |
| Sup | 22.00 | 21.30 | 21.00 | ||
| OIL(WTI): 96.20 | Outlook | ||||
| Res | 96.70 | 97.60 | 98.20 | Oil is pretty tricky right now and is trading in pretty choppy fashion between 92/97…read more | |
| Sup | 95.20 | 94.50 | 93.20 | ||
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