News

Freddie Mac and Fannie Mae shares being haulted pre equity open, trading suspending due to pending news, no details on the news yet.

• we will honour contracts with banks
• says ‘we will pay our debts’

Consumer Prices (MoM):    Survey:  -0.57%         Actual:            Prior:  -0.32%           

Consumer Prices (YoY):   Survey:  3.97%         Actual:              Prior: 4.27%        

Consumer Prices Core (MoM):   Survey:  0.27%         Actual:            Prior:  0.11%       

Trade Balance:             Survey:           Actual:            Prior:  194.7M       

ECB’s Weber is on the newswires stating:

• Buying government bonds has significant risks
• Euro area must reform fiscal policy framework
• ECB measures are “exceptional” to overcome crisis

German economic minister says i am not yet worried by euros depreciation.

Like the EURUSD, the USDCHF has most likely resumed its longer term trend towards USD strength.  This is my working assumption as long as price is above 1.13.  Price is testing a support line drawn off of March and April lows now.

The USDCAD has plunged through Fibonacci support but the trend remains up as long as price is above 1.1976.  Staying above there keeps open the possibility that a wave 4 low is in place within the 5 wave advance from .9055.

I continue to favor the downside against 98.46.  The long term trend remains down and I am looking for a resumption of that trend.  Former support is potential resistance at 97.57.  Short term bearish targets are at 96 and 94 (near former daily lows).

Bigger picture, there are 5 waves down from that .6090, suggesting that the long term trend remains down.  Additionally, an expanded flat correction has unfolded from the February 2 low (.4958).  Weakness is favored against .5939.  Near term, there is potential Fibonacci resistance at .5761.

As long as .7260 is intact, there is significant bearish potential.  The 200 day SMA defends resistance at the key level.  Bigger picture, a complex correction may be complete from the October 2008 low.