Intraday Market Thoughts

Archived IMT (2010.05.25)

by Ashraf Laidi
May 25, 2010 16:11

BLAMING THE DEEPENING SELLOFF solely on the tensions in Korea is akin to attributing the 9% intraday market selloff of May 6 to fat finger errors. And for last Fridays market rebound to have been the attributed to reports/rumours of Goldman Sachs settling with the SEC only highlights the shaky role of sentiment in exacerbating the selloff in equities and risk currencies. We spent sufficient time focusing on the downside risks for the euro and the Aussie, calling for $1.21 and 0.80 as immediate objectives. But the loonie is accelerating losses, catching (down) with the Aussie. USDCAD breaks to new 2010 highs penetrates through 1.0780 to eyeing a retest of 1.0860 top, followed by 200-week MA of 1.0920. But interim USDCAD downside could eyes as low as 1.0680 trendline. CADJPY eyes short term bounce towards 83.80s. Weekly stochastics suggest 81 remains viable for the week.


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