Ashraf Laidi on CNBC Arabia (Greece, Spain & Techs), May 10, 2012

May 10, 2012 16:40

The balance between austerity and growth appears to be tipping into the side of growth reforms, prompting Eurozone sovereign yields to remain supported at the expense of the euro. Meanwhile, markets (euro bulls) are hoping that former Deputy Prime Minister/Finance Minister Venizelos will succeed in forming a new coalition (Democratic Left, Pasok and New Democracy) next Sunday, while excluding the anti-austerity Syriza party. As vocal as the anti-austerity backlash erupts in the Greek street, it lacks the required momentum to pass a complete rejection of austerity policies in Parliament. Meanwhile, EURUSD shows a familiar bottoming pattern, covered in our latest Intermarket Insightshttp://ashraflaidi.com/products/sub01/

Latest IMT - Apr 30

JPY Soars & Oil Drops

The current decline in oil prices has accelerated the decline in USDJPY as Japan is one of the world's biggest oil importers. Some oil charts are showing a potential for a double top. Those who missed the move in USDPY, should tread carefully. The pair broke below the 55 and 100 DMA in a single day to register its biggest percentage decline since December 2022 of more than 2.5% . DXY is down 0.8%, its fastest daily percentage decline since March 19. Shorting USDJPY at this point is risky as it is resting on the trendline support from the April 2025 low. Do not short USDJPY below155.80/80.

For US crude oil, however, currently trading at 104.15, the the next trendline support stands at $102.00, withe the potential of seeing a $101.30 print. Keep an eye on Brent oil, which is already resting on the trendline support (see chart) at $114.00. A close below $111.00, could become the driver of other energy prices and trigger a sub $100 in crude.

Latest Hot-Chart - Apr 22

USDJPY and EURUSD سأرسل رسالة صوتية و كتابية توضيحية لأعضاء مجموعة الواتساب الخاصة حول هذه المخططات - Will send detailed note on latest parameters to our WhatsApp Bdcst Group... View Hot-Chart..

Intermarket Analytics

21-yr Intermarket Charts - 7 indices 11 currencies 14 commodities Chart

21-yr Intermarket Charts - 7 indices 11 currencies 14 commodities Interactive charting by instrument, chronological and alphabetical order. This enables organizing each individual commodity, currency or equity index' performance by magnitude or chronological order. View..