Saturday, May 12, 2012

Action Insight Weekly Report 5-12-12 (trusted: contact@actionforex.com)

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Action Insight Weekly Report Markets Snapshot

Risk Markets Tumbled on Greece Uncertainties, More Selloff Ahead

Global risk markets tumbled last week as political uncertainty in Greece raised the odds of the country leaving Eurozone. European majors dropped against dollar and yen, with EUR/USD broke below 1.3 psychological level. But Aussie and Kiwi were even weaker on risk aversion. Dollar index broke 80 psychological level and the technical development favors further rally in near term. CRB commodity index broke recent down support of 292.39 to resume the larger down trend. Stocks were relatively resilient as DOW was only down -1.6% last week. But selloff in equities could accelerate if DOW breaks 12710 support in near term. With uncertainty in Greece continues, risk markets will remain pressured and be vulnerable to further downside.

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Featured Technical Report

AUD/USD Weekly Outlook

AUD/USD dropped further to as low as 1.0017 last week and there is no sign of bottoming yet. Initial bias remains on the downside this week and current fall should target 100% projection of 1.0852 to 1.0225 from 1.0473 at 0.9846 next. On the upside, break of 1.0225 support turned resistance is needed to signal short term bottoming. Otherwise, outlook will remains bearish even in case of recovery.

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Suggested Readings

The Week in Review and Outlook

 


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