FOREX :Technical Outlook 06.23

The USD recovery which started overnight with the fall in cable has continued slowly in Asia with USD/JPY finally finding a bit of strength and EUR/USD triggering stops below 1.4300 only to find the fall stalled by Sovereign bids.

Bernanke dismissed any possibilities of QE3 in his overnight statement and this led to a revival in the fortunes of the USD. EUR/USD started falling in NY after topping out ahead of very heavy selling interest towards 1.4450. Asia opened around 1.4350 and it’s been a gradual slide lower with stops getting triggered below 1.4300 mid-morning. Asian central bank bids around 1.4290 helped stall bearish momentum. Ranges: 1.4283/1.4351
USD/JPY finally moved after what’s seemed like ages. It rallied to an intraday high of 80.64 on USD short-covering sentiment but corporate offers were steady near the highs. Ranges: 80.24/64
Cable has again been weak, drifting gradually lower as the market gets to grip with the possibility of more quantitative easing. Sterling remains weak on the crosses. Ranges: 1.6016/70, EUR/GBP .8910/32
AUD fell in line with the cable and EUR/USD and also lost ground against the NZD. The poor China PMI failed to drive the AUD/USD below strong bids at 1.0530. Ranges: 1.0528/71