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Asian markets continued selling off assets in line with the recent wave of risk aversion. As expected, whatever caused the so called ‘glitch’ in the NYSE on May 6th, 2010, has come back to haunt the markets. Despite recovering from this ‘glitch’, Markets across the board have reneged on their gains over the course of the past few weeks, and ended lower than May 6th, 2010.
Major institutional insiders are speaking of the “correction we’ve been waiting for.” It appears everyone is selling everything, including Gold.
EURUSD
The EUR/USD may have surprised some in the markets, but not seasoned traders who were expecting a bit of kick-back to the extreme selling of the past few weeks. As the world continues to flee towards risk-adverse assets pull, so too are the Europeans who continue to switch their funds back into the Euro, adding to the effects of the recent short covering/ short squeeze rally.
Support/Resistance: 1.2454/1.2738
USDJPY
Japanese importer bids supported the dollar overnight as business related interests continue to dominate the direction of the Japanese exchange rate. The Nikkei has dropped over 5% this week alone. According to financial analysts, if the Yen were to strengthen alongside a losing market, Japanese exporters would get double hit, so accordingly the interest rate is supported.
Support/Resistance: 89.00/92.00
Gold
Gold continued to fall overnight, as the precious metal struggled to hold on to investors as traders drop like flies out of their long positions. In an environments where everyone is selling everything and the real threat to the money supply is deflation due to the recessionary effects of a double dip, Gold no longer represents a safe haven. Accordingly, Gold continues to slide south.
Support/Resistance: 1157/1195
Written by Finexo.com
