AUDUSD: The Australian dollar was higher late Monday as markets welcomed news the pro-austerity New Democracy party eked out an election victory in Greece, reducing the likelihood of a Greek exit from the euro-zone.
Reserve Bank of Australia’s policy-setting board, urged European leaders to act swiftly to avoid a sovereign debt crisis spreading beyond Greece and Spain into a global slowdown that affects not just Europe but also the U.S. and China, Australia’s biggest trade partner.
We expect a range for today in AUDUSD rate of 1.080 to 1.0140 (the pair hit our limit Sell potion)
We set limit SELL for AUDUSD at 1.0120 (continued to hold)
Stop loss at 1.0160
Target at 1.0010 and 0.9960
EURUSD: Leaders of the 27 EU member states will gather in Brussels later this month for a summit to set out a “building-blocks” program to create growth and jobs. They will “kick-start the necessary work and have a clear road map for decisions at least in some crucial areas.”
Along with talks about forming a banking union–which would include rules on common oversight, risk-sharing and resolution in the event of a bank collapse–there could be further discussions of how to pool some of the bloc’s debt
We expect a range for today in EURUSD rate of 1.2500 to 1.2620 (holding short position since last week at 1.2600)
We set limit SELL for EURUSD at 1.2655 (holding short positioned since last week)
Stop loss at 1.2710
Target at 1.2570 and 1.2510 (reached first target at 1.2570)
USDJPY: Investors are likely to welcome the light calendar of economic reports this week. That will leave them time to focus on consequences of the weekend’s Greek elections and the midweek policy meeting of the Federal Reserve.
The report with biggest market-moving potential is Thursday’s manufacturing report from the Fed bank of Philadelphia. The report follows last Friday’s very weak factory survey from the New York Fed that raised worries about the manufacturing sector.
We expect a range for today in USDJPY rate of 79.00 to 79.80
We set limit BUY for USDJPY at 79.10 (continued to hold)
Stop loss at 78.60
Target at 79.60 and 79.80
