13/06/2011

Wall Street has completed its worst performance since 2002, as indices shed more than 1.4% on Friday, and closed the week in the red zone for a six time in a row.  Economic data has continued to be disappointing as import prices have jumped over 12% during the past 12 months. The Inflation is investors' main concern when the interest level is low, and therefore the monthly core CPI data on Wednesday will attract their attention.  

S&P 500 is far by just 20 points from the next critic support at 1250. Many buyers will wait there in order to get in, and it will be interesting to see how the index will deal with that support.

The Australian bank and some European banks will be closed on Monday, so there might be a narrow range in the market that day.

EUR-USD

The Euro has reacted aggressively down during Trichet's speech on Thursday, and continued the negative momentum on Friday. It has broken the support of the retest area at 1.4450, and closed the week at the support of the 50 EMA, at 1.4330.

Last week correction stopped at the 50% Fibonacci level and it can reach up to the 62% level in order to keep it as an appropriate correction level in technical analysis terms. If it breaks through the support at 1.4330, it might slip to the bottom of the last mini-trend at 1.40.

AUD-JPY

This pair is being supported by an accurate level at 84.30, which is a former resisting area. The Australian banks will be closed on Monday, so it might by a good chance for the Yen to take advantage of the missing Australian investors.

The daily chart shows several breaking patterns. The first one is an "Inverted cup & handle" and the second is a bearish triangle. Both patterns are strong signals for a possible break-down, which if it occurs, the next significant support will be the 200 EMA at 83.0. Pay attention to the cross of the 20&50 EMA, which is a bearish signal as well.

The Japanese overnight call rate will be announced on Tuesday and is expected to remain under 0.10%.

Gold

The gold has been resting in the last few days, after impressive recovering from the sharp declines that occurred in all metal prices last month. The gold is investors' "safe-shore" when the stock markets fall, and therefore we might see a growth in the demand for the precious metal.

The trending line that connects between the trend's lows, indicates that the gold might correct to 1510-1515$ per ounce before it will back rising again.

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