Psychology for major markets June 10
More rockets being fired
EUR/USD – The Euro continue its rebound from support around 1.1490 area and is staging a small rally. The Middle East situation has actually worsened so the Euro rally maybe hard to sustain.
USD/JPY – USD/JPY is slowly grinding above the 160 figure. We are yet to hear any jawboning as the latest rally is event driven. However, another rally of a figure and two shall be met with some kind of intervention.
AUD/USD – The Aussie broke through support around 0.7030 area. It is understandable given the current risk atmosphere and precious metal performance. The next major support is pretty far away around 0.6830 area but cannot rule out a quick test if risk aversion spirals.
Equities & Others – Major equites are facing a slaughter on poor atmosphere, triggered by the missiles flying in Middle East. Hard to see a swift recovery unless either side meet in the middle ground.