Update Daily Investment News

Daily Forex Technicals | Written by FXtechtrade

EUR/USD

Today's support: - 1.3566 and 1.3530(main), where correction is possible. Break would give 1.3501, where correction also may be. Then follows 1.3472. Break of the latter would result in 1.3457. If a strong impulse, we would see 1.3429. Continuation will give 1.3407. Today's resistance: - 1.3667 and 1.3688(main). Break would give 1.3703, where a correction is possible. Then goes 1.3736. Break of the latter would result in 1.3756. If a strong impulse, we'd see 1.3771. Continuation will give 1.3795.
USD/JPY
Today's support: - 90.84, 90.43 and 90.14(main). Break would bring 89.80, where correction is possible. Then 89.52, where a correction may also happen. Break of the latter will give 89.31. If a strong impulse, we would see 89.10. Continuation would give 88.54.Today's resistance: - 91.41, 91.80, 92.12 and 92.38(main), where a correction may happen. Break would bring 92.64 where also a correction may be. Then 93.11. If a strong impulse, we would see 93.32. Continuation will give 93.56.
DOW JONES INDEX
Today's support: - 10351.00(main), where a delay and correction may happen. Break of the latter will give 10327.20, where correction also can be. Then follows 10293.72. Be there a strong impulse, we 10271.26. Continuation will bring 10242.50.Today's resistance: - 10427.72 and 10438.37(main), where a delay and correction may happen. Break would bring 10460.46, where a correction may happen. Then follows 10484.32, where a delay and correction could also be. Be there a strong impulse, we'd see 10517.70. Continuation would bring 10532.40.

0519 GMT [Dow Jones] Indonesia shares down 0.1% at 2561.923 midday in light volume, off earlier low of 2539.385, as selling in select bank and automotive blue chips keeps index in red despite bargain buying by foreign funds. "Foreign funds have almost turned to be net buyers after being net sellers most of the morning session, lifting the main index from its low," says trader at Reliance Securities; expects bargain buying later in session to drive index to positive territory. Foreigners still net sellers of IDR890 million vs IDR40 billion earlier session. Bellwether Telkom (TLKM.JK) down 1.8% at IDR8,350, off IDR8,200-low, while Bank Danamon (BDMN.JK) down 1.9% at IDR5,100, rebounding from IDR4,975-low. Consumer goods producer Unilever (UNVR.JK) +3.1% at IDR11,550 on bargain buying.

0447 GMT [Dow Jones] HSI +1.2% at 20,629.51 midday, with gains primarily driven by 4 mainland banks, HSBC (0005.HK), SHK Properties (0016.HK) - these 6 stocks account for over half of HSI's 252-point gain. China banks' gains come after China Merchants Bank (3968.HK) announces rights issue plan details, raising hopes others may follow suit, long-standing sector overhang likely removed soon. HSBC +1.6% at HK$85.00 ahead of FY09 results Monday. "This is the one results everyone is waiting for, and could set the tone for the market's near-term direction," says Castor Pang of Cinda International. SHK Properties (0016.HK) +3.6% at HK$105.80, after it grabbed two pieces of land - one in HK, one in China - for combined HK$8.74 billion yesterday. Market volume improves to HK$34.76 billion at interval; 20,684, previous (Feb. 17) rebound high, likely tested in afternoon; if breached, more meaningful cap at psychological 21,000 for HSI.(

0359 GMT [Dow Jones] USD/JPY at 90.98, lower than New York Monday's 91.13; Bank of Tokyo-Mitsubishi UFJ senior dealer Tomoki Ohashi says pair may fall close to 90.00 if Japanese stocks remain weak as there are some stop-loss selling orders below 91.00. Yet downside unlikely below 90.00 due to speculation Japanese trust funds may sell lots of yen related to launch of toshin accounts (type of trust fund) this week. "It looks like a lot of non-Japanese speculators believe toshin-related yen selling will be large. That should support the dollar/yen." This week, Nomura Asset Management to launch 16 toshin accounts, Nikko Asset Management to open 4.

0354 GMT [Dow Jones] Daiwa Institute of Research says Nikkei benchmark is holding above convergence level for 13- and 26-week moving averages--a bullish signal if the index continues to hold above the 5-week average as well. Adds, US stocks at at an inflection point with DJIA trading around convergence level for 5- and 13-week moving averages. Says although US equities are selling above 50-day moving average, slope has turned slightly negative, with momentum trading likely to continue for now. "Investors may also be hoping to take a cue from China, namely the response to higher reserve requirements..." Lacking clear domestic trading catalysts, Japan equities likely to receive little help from Chinese stocks, which have been trapped in a range for past six months, notes house, "unless the market stages a significant breakout to the upside."

0311 GMT [Dow Jones] China shares extend losses, with benchmark Shanghai Composite Index dragged by heavyweight Ping An Insurance (601318.SH) on additional share supply concerns. Shanghai Composite now down 1.8% at 2950.64, with immediate support at 2900. Ping An off 8.6% at CNY44.84, after hitting 10% downside trading limit earlier, after company says 3 shareholders would sell combined 859.8 million A-shares worth around CNY39 billion from next Monday, when 3-year lockup period expires. "News about the stake sale in Ping An had a big impact on other index heavyweights as well. There are concerns that some blue chips are no longer viewed as attractive by institutional investors," says Zhang Gang from Southwest Securities. Among active shares, Poly Real Estate (600048.SH) also down 3.1% at CNY18.54. Shenzhen Composite Index down 1.6% at 1110.94.

0310 GMT [Dow Jones] Indonesian government's local bond auction may attract good bids today as IDR5.9 trillion cash released Monday from a bond maturity on top of IDR3.1 trillion maturing last week, dealers say; government aims to raise IDR4 trillion in auction today, with market expecting 1-year security to yield 6.9%; FR31 (due 2010) 9.88%; FR52 (due 2030) 10.81% and FR50 (due 2038) 10.92%; results likely around 0800 GMT.



0246 GMT [Dow Jones] Kospi down 0.6% at 1617.81 in thin volume, fall further tracking weak China market after lurching in, out positive territory earlier amid lack of clear cues, says Won Jong-hyuck at SK Securities; suggests sell stocks when Kospi above boxed 1550-1650 band near term. But expects long-term positive prospective for China's economy, Korea's largest export destination, to prevent any drastic pullback. Market expected to remain directionless until emergence of clear signs from various external matters, including debt-strapped Greece; Kospi may find immediate support at 1600 today. LG Display (034220.SE) down 4.6% at KRW36,450 on potential supply overhang concerns after global panel makers' aggressive capex increase from last year, says Won; LG Electronics (066570.SE) also down 2.6% at KRW114,500. But autos remain solid with Hyundai Motor (005380.SE) flat at KRW117,000, Kia Motors (000270.SE) +0.7% at KRW21,400.

0537 GMT [Dow Jones] Spot gold at $1,116.40/oz, up $3.80 since New York close; now in consolidation phase ahead of Fed Chairman Ben Bernanke's biannual testimony before Congress, which begins Wednesday. "The base has been built so all it needs now is Bernanke to dampen rate expectations and we can look to move higher," says Singapore based trader. Adds, no direction from forex markets so gold just trading in tight range. ScotiaMocatta technical analysis puts short term support at $1,098, upside resistance at $1,143.

0543 GMT [Dow Jones] EUR/CHF surges to 1.4684 from 1.4630 earlier in session; 2 dealers in Tokyo say short-term speculators' buying on vague talk SNB is in market again. "I haven't seen the name on the screen myself, but there are many investors who are talking about (SNB intervention) now," says senior dealer at major Japan bank; pair last at 1.4667; tipped in 1.4640-1.4690 range for now.

(Bloomberg) -- A rally that has boosted coal prices 21 percent from their lows last year may have further to go as the coldest U.S. winter in nine years and China’s record imports increase demand and drain stockpiles. Prices will average $59.28 a ton this year, up 17 percent from $50.75 as of Feb. 19 on the New York Mercantile Exchange and 41 percent more than last year’s low in April, according to the median of 11 analyst estimates in a Bloomberg News survey. Stockpiles at utilities swelled last year after a mild summer and the economic recession reduced power demand.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQitDZzG5diA&pos=7

Australian Dollar May Rise to 1-Month High: Technical Analysis
(Bloomberg) -- The Australian dollar may rise to a one-month high of 91.51 U.S. cents should it close above so- called resistance at 90.42 cents, said Pak Lai, a technical analyst at Forecast Pte in Singapore, citing trading patterns.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVVi4hGU_6hw

Shanghai Composite Faces Further ‘Downside’: Technical Analysis
(Bloomberg) -- China’s stocks, Asia’s worst performers this year, may extend losses in “coming weeks” as the Shanghai Composite Index runs into resistance at a moving average, according to CIMB Investment Bank Bhd.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAcihndAITUc

S&P 500 Above 1,107 Cuts Chance of Declines: Technical Analysis
(Bloomberg) -- There is less chance a so-called correction in the stock market will continue if the Standard & Poor’s 500 Index remains above the 1,107 level, according to the head of technical analysis at Credit Suisse Group AG.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axfTv4Tsbbo0

Five-Year Yields to Rise to One-Month High: Technical Analysis
(Bloomberg) -- Treasury five-year note yields will rise to 2.54 percent, a level last reached more than a month ago, according to CRT Capital Group LLC.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKOhmA6JXsWA

(Bloomberg) -- A rally that has boosted coal prices 21 percent from their lows last year may have further to go as the coldest U.S. winter in nine years and China’s record imports increase demand and drain stockpiles. Prices will average $59.28 a ton this year, up 17 percent from $50.75 as of Feb. 19 on the New York Mercantile Exchange and 41 percent more than last year’s low in April, according to the median of 11 analyst estimates in a Bloomberg News survey. Stockpiles at utilities swelled last year after a mild summer and the economic recession reduced power demand.

Marc Faber Expects U.S. Stocks to Fall This Year: Video
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCW2ybgMQGb4

Charts: Stocks Likely to Double Dip After May
By: CNBC.com Stocks could continue to push higher until May, but after that there is a serious risk of a double dip, Robin Griffiths, technical strategist from Cazenove Capital, told CNBC Monday.
http://www.cnbc.com/id/35517267

Soros
http://www.cnbc.com/id/35516562