Intraday Market Thoughts

Archived IMT (2010.08.12)

by Ashraf Laidi
Aug 12, 2010 16:45

YEN EXTENDS PULLBACK as markets stabilize, while CHF takes over from the Japanese currency, reminding us the Swiss safehaven is here to stay. The latest comments from Japanese officials about excessive yen moves have not been sufficiently potent as markets widely believed intervention will not be carried out. Thus, any temporary selloff in JPY and USD sees more conviction buying in CHF. Hence, despite the 70-ptrally in EURUSD, EURCHF has deepened its losses by 150 pts after breaking below the 1.36 trend line support. AUDJPY, EURJPY and GBPY faces resistance at 77, 110.90 and 134.20, while downside remains intact. EURUSD bottomed at the 100-day MA for today but will be crucial for the pair to close the week above its June trendline support of $1.2770 to avoid immediate damage below $1.2580.


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