The Asian stock markets ended divergently

The appetite for risk is pausing ahead of the US open after firming up since Federal Reserve Chairman Bernanke reiterated late Wednesday that quantitative easing was here to stay. Most European and commodity currencies open slightly lower on profit taking after surging late Wednesday and Thursday. Only Canada and the yen open flat. The Asian stock markets ended divergently. The European bourses are up, while the US stock markets are slightly lower in pre-open trading. Gold, oil and silver are down.

The short-term outlook for most foreign currencies is sideways. The medium-term outlook for most of the foreign currencies is sideways. The LGR short-term model is long on most foreign currencies.

Good luck!

Overnight

• Australia: Home loans rose 1.8% in May after 1.2% in April.

•  Australia: Investment lending for homes following 1.5% in May after 1.1% in April.

•  Japan: Industrial production for May was revised down to +1.9% from +2.0%.

• Japan: The Bank of Japan monthly economic survey showed expectations for exports and industrial production to increase moderately as the economy recovers.

• Eurozone: Industrial production fell 0.3% in May following +.0.5% in April

• Italy: The HICP was confirmed at +1.4% in June y-o-y following 1.3% in May.

• UK: The leading economic index rose to 0.4% in June from +0.2% in May.

Today's economic calendar

• US: Producer Price Index for June

• US: Reuters/Michigan Consumer Sentiment Index for July

• Canada: Ivey Purchasing Managers Index for June

EUR – June

The LGR Model: Long since July 10

The September euro opens lower in the US after closing off a 2 ½-week high on Thursday and bottoming at a three-month low on Tuesday. The euro is testing the support of the 21-day exponential moving average. It had peaked at a four-month high on June 18. The euro had topped at a 14-month high on February 1 and bottomed at an over two-year low in July 2012.

The short-term outlook is sideways. The medium-term outlook is sideways and the LGR model is long.

The 21-day exponential moving average supports at 1.3036. Further support is at 1.2930 and 1.2810.

Initial resistance is at 1.3115. Thursday’s high is 1.3212. A pivot high is at 1.3250.

INDICATORS

Fast stochastics: Bullish

MACD: Bearish

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Sideways

LONG-TERM: Sideways

JPY – September

The LGR Model: Long since July 10

The September Japanese yen opens around the 21-day exponential moving average after closing at a two-week high on Thursday. The yen bounced from a near two-week on Monday and marked an over two-month high on June 13. The yen bottomed at a 4 1/2-year low on May 22 and peaked on June 13, 2012.

The short-term outlook is sideways. The medium-term outlook is sideways and the LGR model is long.

Immediate resistance is at 1.0184. The next cap is 1.0245.

Initial support is at 1.0040. The next floor is .9925. A pivot low is at .9852.

INDICATORS

Fast stochastics: Bullish

MACD: Bearish

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Bearish

LONG-TERM: Bearish

GBP – September

The LGR Model: Short since June 19

The September pound opens slightly lower in the US after its rally to a one-week high on Thursday was capped by the 21-day exponential moving average. The pound bottomed at a three-year low on Tuesday. It is still trading just below, so is not oversold any longer. The pound peaked at a four-month high on June 17 and bottomed at a 33-month low on March 12.

The short-term outlook is sideways. The medium-term outlook is sideways and the LGR model is short.

Immediate support is at 1.5115. The next floor is 1.5025. A pivot low is at 1.4806.

The 21-day exponential moving average resists at 1.5204. Further resistance is at 1.5305.

INDICATORS

Fast stochastics: Bullish

MACD: Bearish

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Sideways

LONG-TERM: Sideways

CHF – September

The LGR Model: Long since July 10

The September Swiss franc opens just below the 21-day exponential moving average after surging to a two-week high on Thursday. The franc bottomed at a 5 1/2-week low on Tuesday. It peaked at a new high for its upmove on June 13 and hit a nine-month low on May 22.

The short-term outlook is sideways. The medium-term outlook is sideways and the LGR model is long.

Immediate support is at 1.0525. A further support is at 1.0480. Distant support is at 1.0350.

Initial resistance is at 1.0642. The next cap is 1.0700.

INDICATORS

Fast stochastics: Bullish

MACD: Bearish

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Sideways

LONG-TERM: Sideways

CAD – September

The LGR Model: Long since July 8

The September Canadian dollar opens on a firm note in the US after closing off a three-week high on Thursday and bottoming at a 21-month low late last week. It is now trading above the 21-day moving average.

The short-term outlook is sideways. The medium-term outlook is bearish but the LGR model is long.

Immediate resistance is at .9670. Further resistance is at .9725.

The 21-day exponential moving average supports at .9571. A pivot low is at .9409.

INDICATORS

Fast stochastics: Bullish

MACD: Sideways

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Bearish

LONG-TERM: Slightly bearish

AUD – September

The LGR Model: Long since July 9

The September Australian dollar opens lower in the US after finishing off a near two-week high on Thursday and bottoming at a three-year low last week. The Aussie peaked at a medium-term high on April 11 and had formed a peak for the uptrend on January 10.

The short-term outlook is sideway to slightly bearish. The medium-term outlook is bearish but the LGR model is long.

Immediate support is at .9080. The next floor is .9035. A pivot low is at .8987.

Initial resistance is at .9150. The 21-day exponential moving average caps at .9212. The next caps are .9263 and .9355.

INDICATORS

Fast stochastics: Sideways

MACD: Sideways

Ichimoku: Sideways

OUTLOOK

NEAR-TERM: Sideways to slightly bearish

MEDIUM-TERM: Bearish

LONG-TERM: Bearish