Asia FX
By Cornelius Luca - Tue 11 Sep 2012 16:55:21 CT
Related Keywords: FX
The appetite for risk rose on Tuesday after Germany's Constitutional Court said that it would not postpone its long-awaited ruling on the legality of the Eurozone's bailout fund. The foreign currencies advanced across the board after most of the European and commodity currencies slipped on Monday. This strength should persist on Wednesday as well, as German politicians will play ball. The US stock markets advanced. Gold and oil closed slightly higher.

The short-term outlook for the foreign currencies is sideways. The medium-term outlook for most of the foreign currencies is slightly bullish. The LGR short-term model is long on all foreign currencies. Good luck!


www.lucafxta.com
Overnight

  • US: The trade deficit expanded slightly to $42.0 billion in July from $41.9 billion in June.




  • Canada: Housing starts rose to 224.9K in August from 208.0 in July.

  • Canada: International merchandise trade showed a deficit of C$2.34 billion in July, wider than -C$1.93 billion in June.






Today's economic calendar

  • Japan: Domestic corporate goods price index for August

  • Japan: Machinery orders for July

  • Japan: Tertiary industry index for July

  • Australia: Westpac consumer confidence index for September   






EUR – December

Luca Model: Long since August 3

The overbought December surged to a four-month high on Tuesday and should march higher on Wednesday as well. It is overbought. The euro is trading above the 100-day exponential moving average. The euro had bottomed an over two-year low in late July and remains in a rising channel.

The short-term outlook is sideways. The medium-term outlook is bullish and my model is long.

Initial resistance is at 1.2930. Further resistance is at 1.2977.

Immediate support is at 1.2755. The next floor is 1.2670. The 21-day exponential moving average supports at a distant 1.2576.

INDICATORS

Fast stochastics: Bullish

MACD: Bullish

Ichimoku: Bullish

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Bullish

LONG-TERM: Sideways



JPY – December



Luca Model: Long since August 22

The December Japanese yen exploded to a five-week high and above the top of a symmetrical triangle. It is trading above the 21-day exponential moving average. The yen had bottomed at a five-week low on August 17.

The short-term outlook is sideways. The medium-term outlook is sideways and my model is long.

Immediate resistance is at 1.2870. A pivot high is at 1.2920.

The 21-day exponentially smoothed moving average supports at 1.2745 and the 100-day exponential moving average at 1.2676. The next resistance levels are 1.2800 and 1.2854.



INDICATORS

Fast stochastics: Bullish

MACD: Bullish

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Sideways

LONG-TERM: Sideways



GBP – December



Luca Model: Long since July 19

The overbought December pound resumed gains on Tuesday and hit a four-month high. The pound had formed a medium-term peak at an eight-month high on April 30 and a bottom at a 4 1/2-month low on June 1.

The short-term outlook is sideways. The medium-term outlook is bullish and my model is long.

Initial resistance is at 1.6130. A pivot high is at 1.6276.

Immediate support is at 1.6025. The next floor is 1.5905. The 21-day exponential moving average supports at a distant 1.5842.

INDICATORS

Fast stochastics: Bullish

MACD: Bullish

Ichimoku: Bullish

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Bullish

LONG-TERM: Sideways



CHF – December



Luca Model: Long since August 3

The December Swiss franc rallied to a three-month high. The franc is trading above the 100-day exponential moving average. It had marked a near two-month high on August 31 and bottomed at a 19-month low on July 24. The franc has been trading a rising channel since then.

The short-term outlook is sideways. The medium-term outlook is bullish and my model is long.

Initial resistance is at 1.0685. The 200-day exponentially smoothed moving average resists at 1.0755.

Immediate support is at 1.0600. The next floor is 1.0525. The 21-day exponential moving average follows at a distant 1.0460.

INDICATORS

Fast stochastics: Bullish

MACD: Bullish

Ichimoku: Bullish

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Bullish

LONG-TERM: Bearish



CAD – December





Luca Model: Long since June 29

The overbought December Canadian dollar advanced to a new high for the uptrend on Tuesday. The Canadian dollar has been trading in a channel rising since late July. It bottomed at a 5 1/2-month low on June 1.

The short-term outlook is sideways. The medium-term outlook is bullish and my model is long.

Immediate resistance is at 1.0305. Further resistance is at 1.0400.

Initial support is at 1.0230. The next floor is 1.0170. The 21-day exponential moving average supports at a distant 1.1001.

INDICATORS

Fast stochastics: Bullish

MACD: Slightly bullish

Ichimoku: Bullish

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Bullish

LONG-TERM: Sideways



AUD – December



Luca Model: Long since September 7

The December Australian dollar rallied above the 21-day exponential moving average on Tuesday. The Aussie, which has been advancing since June 4, peaked at a new high for the uptrend on August 9.

The short-term outlook is sideways. The medium-term outlook is slightly bullish and my model went long.

Immediate resistance is at 1.0450. Further resistance is at 1.0525.

The 21-day exponential moving average supports at 1.0380. A further floor is at 1.0320. A pivot low is at 1.0077.

INDICATORS

Fast stochastics: Bullish

MACD: Sideways

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Slightly bullish

LONG-TERM: Sideways

View All Market Commentary

*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

 
 
 
 
Calgary Houston Chicago New York Washington São Paulo Belfast London Singapore Hong Kong Seoul Tokyo
  • © 2013 CME Group Inc. All rights reserved.
  • CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of five Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX, COMEX and KCBT.