AUTOREFRESH 
EUR/JPY support gives way; EUR/USD support at 1.3335
By Jamie Coleman || November 23, 2010 at 16:44 GMT
|| 7 comments || Add comment
EUR/JPY support in the 111.00/05 area has given way despite “semi-official” buying from Kampo on the way lower. Just like the heavy central bank buying all the way down in EUR/USD today, it has not been able to turn the tide, showing how strong today’s selloff is.
For EUR/USD, the next level of support is the 1.3335 level, the top put in place in early August.
AUD/USD has broken the neckline of its head and shoulders at the 0.9744, suggesting a medium-term top is in place in that pair.
Buy eurjpy down here (110.80) for short term bounce to 111.50 is my plan.
What are the bond spreads looking like after this sell-off?
European markets are closed but they are much wider today than yesterday…Contagion not dying down…
JC, what is your view on the risk associated with Portuguese *banks*?
From what I can tell, Portugal’s problems are much more structural than as a result of the credit bust…The one advantage Ireland has is that most of the problems are with the banks…clean up the banks and the economy can heal itself. Portugal has productivity and competitiveness issues which are not easily overcome.
You kind of answered the mirror image of my question… which was motivated by the spread associated with Banco Comercial Portugues SA SUB, sort of, er, gaping… Other banks are not much better. Any shade of bk or financing trouble associated with banks and average Joe on the streets is going to be a lot more in unrest than with what regards to the State, believe me… people over here tend to see the State as unassailable, which as we well know is dead wrong. But for social unrest purposes what counts are the banks and companies.
http://www.jornaldenegocios.pt/home.php?template=SHOWNEWS_V2&id=455351