Spain in focus with strikes and sustainability concerns

Spain was on the news yesterday, after going under pressure by market concerns on banking system and sovereign debt throughout the week, Mariano Rajoy’s government faced its first 24-hour strike against the cuts and labor reform proposed in the last months. As people took to the streets defying Partido Popular measures that were against their own electoral offers.

 
EUR/USD
Range: 1.3311 – 1.3376
Support: 1.3320
Resistance: 1.3360

Euro-dollar closed in NY at 1.3300 having recovered off session lows of 1.3251 through the NY afternoon. The rate marked lows into early Asia at 1.3295, as early downside stops were targeted in dollar-yen and euro-yen, but after triggering stops in dollar-yen below 81.90 strong buyers emerged of this pair and euro-yen which propelled euro-dollar higher. The move up triggered stops through 1.3320, which added to the upside momentum, with the rate touching a high of 1.3359. Offers noted toward 1.3360, with stops above, a break to open a move on toward 1.3375-1.3385. Above here and progress toward 1.3400 expected to meet option related offers placed to a well reported barrier at 1.3400. Above and next resistance seen at 1.3415-1.3425 (barrier at 1.3425-stops above). Support 1.3320, 1.3300.

GBP/USD
Range: 1.5955 – 1.6032
Support: 1.5950
Resistance: 1.6100

Cable closed in NY at 1.5950, having recovered off session lows of 1.5860. The rate touched an early session low of 1.5949 before extending the recovery, the move breaking above key resistance at 1.5964 to take it on to an eventual high of 1.5990 ahead of the European open. The rate retains a strong tone in early European dealing with corrective pullbacks thus far remaining very shallow. Offers are seen to the recent high at 1.6002, with further sell interest noted above and extending toward the stronger area between 1.6015-1.6020. Stop entry levels have been noted in place on a break of 1.6025, a break here to open a move on toward 1.6035-1.6050 ahead of 1.6070-1.6080 and 1.6100. Support remains in place back at 1.5950. Euro-sterling edged up from early lows of 0.8335 to 0.8359.
USD/JPY
Range: 81.83 – 82.33
Support: 81.76
Resistance: 82.36

Dollar-Yen opened in Asia at 82.46 and nudged up to 82.50 before Japanese names and a Major US black box fund sold aggressively taking the pair down to 82.25. A second wave then targeted the 82.00 level and a big bid at 81.95. This was eventually filled tripping large stops through 81.90 to lows of 81.83. Euro-yen was scythed from early highs around 109.76 to 109.04 on the move. The market turned on its head again catching all wrong footed in euro-yen with a bounce back to 109.89 with the move helping the dollar back up through 82.00 to 82.34. Support now awaits 81.76 and then 81.39 follows, resistance looks at 82.36, followed by 82.73 and 82.96.