Wednesday, June 22, 2011

Daily Markets Analysis - 22 June 2011

The global economy was relieved last night as the Greek government passed the confident voting test and markets have reacted aggressively when the news flooded the media. These were good news, but the experts know that it is just a matter of time before Greek will announce for its incapability to return its depth.

Wall Street rose about 1% and it would be interesting to see the Greek crisis impact on the US stock market. Today might be an inside they, as investors will probably wait for the FOMC press conference later this evening.

The S&P 500 broke through the resistance we has set at 1280, and crossed above the target at 1290. The gap-system produced 1.5% in the large blend index.

USD-JPY

The Japanese currency is having difficulties in breaking down the support at 80.0. It is a round number with a psychological impact on the traders, which trying to buy the USD in these levels. The descending triangle pressures the Yen down and a break-up here could be powerful. However, if the Greek crisis gets out of control, the USD might get stronger again.

 
GBP-CHF

Both currencies are getting stronger against the USD these days, but the Swiss is obviously much powerful. In fact, Wall Street plunging did not affect on the Swiss, which indicates for its strength.

Directional indicators are calling for oversold but no doubt that this pair is facing down. The Weekly chart shows a bear-flag pattern, and a break-down of the support at 1.36 might slide to 1.3750-1.37.

 
CHF-JPY

This interesting battle between these two strong currencies seems to tend to the Swiss side. The daily trend is clearly bullish, and the moving averages are moving parallel to each other, which is indicating for price increasing.

It looks like that the recent correction in the Yen against the Swiss is over and a reversal might occur. A break-up of the resistance at 95.5 will be a strong signal for that, and the price might hit the pick at 96.5.