Feelings are not supposed to be logical. Dangerous is the man who has rationalized his emotions. ~ David Borenstein
Good morning. Many pairs reversed course from fresh tops and ended in negative territory yesterday, especially the risk sensitive ones following stock indices – S&P500 and Dow suffering their second-largest loss this year. To sum it up in a nutshell: what goes up, must come down. Here are a few charts depicting current market sentiment
EURUSD
There’s no sign yet that current decline has come to an end, so it’s a good idea to expect a test of 1.2440/50 which is the next support. In case of upside pullbacks, former support around the upward trendline should provide a decent selling point
EURUSD Chart 4hrs 6-22-2012
Dollar Index
A new test of 83 seems likely.
USD Index Chart Daily 6-22-2012
S&P500
S&P500 is back below 1340 which was breached just a few days ago and the large loss is scary. Recovering from here in the coming days, after such a decline, is quite difficult
SPX Chart Daily 6-22-2012
EURJPY
EUR holds onto gains surprisingly well, thank to the USDJPY which is rallying, testing resistance
EURJPY Chart 4hrs 6-22-2012
AUDJPY
Support zone is in focus these days
AUDJPY chart daily 6-22-2012
USDJPY
Resistance around 80 is under pressure and it seems that a breakout is imminent
USDJPY Chart Daily 6-22-2012
GBPUSD
Short-term support formed by a horizontal line connecting recent top zone and the upward trendline is being tested today.
GBPUSD chart 4hrs 6-22-2012
AUDUSD
Aussie dollar followed stocks and declined, testing interim support near parity level
AUDUSD Chart Daily 6-22-2012
Enjoy your weekend
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