Dollar Rebounded, Markets Just Nervous on Greece, or Risk Market Reversing? It looked as if risk markets started to lose momentum as Greece headed closer to securing the EUR 130b second bailout from EU/IMF. Friday's selloff in stocks could be seen as position squaring ahead of the crucial austerity package vote in Greek parliament. It could also be seen as a sign that investors were indeed looking past and jumping ahead the Greek events and reversing their positions for short term. We'd like to point out that DOW has so far failed to sustain above prior high of 12876 made in 2011 and risk of reversal is starting to build up. CRB commodity index showed sharp fall on Friday and ended the week in red. In currency markets, Euro, Sterling, Swiss Franc and Canadian dollar showed sign of short term topping against dollar. Aussie was less weak but is also vulnerable to deeper fall. The initial reaction this week to the Greek vote should reveal whether markets were just nervous ahead of the weekend, or they're reversing the underlying trend. Full Report Here... | 
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USD/CAD Weekly Outlook USD/CAD's recovery last week pushed daily MACD back above signal line and suggests that a short term bottom is already in place at 0.9926, ahead of 0.9891 support. Initial bias is neutral this week with focus back on 1.0070 minor resistance. Break there will confirm this case. Also, this will be a signal that whole decline from 1.0522 is finished. That is, another rising leg inside the pattern from 1.0656 could have started then and would turn near term outlook bullish for upper trend line resistance (now at 1.0342). Nonetheless, failure to take out 1.0070, followed by break of 0.9926 will extend the fall from 1.0522 back through 0.9891 support instead. Read more... |
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