Forex Technical & Market Analysis: January 08 2013
MARKET OVERVIEW
2013-01-08 03:00 GMT
Japan to buy ESM bonds to stabilize the yen
The big story in the Asian session is the announcement by Japan of its commitment to purchase ESM bonds to help stabilize Europe, Japan Finance Minister Taro Aso told reporters. The decision-maker added that Japan will buy European ESM bonds using FX reserves, although amount of bond buys is undecided at this point, he said. In another Reuters headline, Mr. Aso said the buys will start as soon as today. Meanwhile, the Economic Revival Minister Amari said that upcoming BoJ stimulus will be “significant”.
Meanwhile,after months of uncertainty and struggle to reach a compromise in Congress, lawmakers finally voted on a deal to avoid falling completely off of the fiscal cliff. The agreement, voted on early New Year’s Day by the Senate, was finally passed by the House late at night, just days before the new Congress is sworn in. Tax reform dominated much of the heated debate in recent weeks, but the Democrats and Republicans finally reached an agreement in order to avoid a significant impact on economic activity, at least in the short-term. -FXstreet.com
Forex Economic Calendar
2013-01-08 07:00 GMT | Germany. Trade Balance s.a. (Nov)
2013-01-08 10:00 GMT | E.M.U. Retail Sales (YoY) (Nov)
2013-01-08 11:00 GMT | Germany. Factory Orders n.s.a. (YoY) (Nov)
2013-01-08 20:00 GMT | United States. Consumer Credit Change (Nov)
Forex News
2013-01-08 05:59 GMT | GBP/USD moving sideways above 1.6100
2013-01-08 05:18 GMT | EUR/USD likely to remain on the defensive ahead of ECB
2013-01-08 04:41 GMT | AUD/USD at session lows below 1.0480
2013-01-08 04:21 GMT | EUR/AUD printing fresh weekly highs above 1.2500
| AUDUSD | NZDUSD | USDCHF | USDCAD | GBPJPY | EURCHF | GOLD | SILVER |
|---|---|---|---|---|---|---|---|
| 1.04816/824 | 0.83595/610 | 0.92093/109 | 0.98696/708 | 140.935/950 | 1.20889/903 | 1649.24/.52 | 30.17/.20 |
TECHNICAL ANALYSIS
EURUSD
HIGH: 1.31397 | LOW: 1.31035 | BID: 1.31231 | ASK: 1.31234 | CHANGE: 0.05% | TIME: 08:20:35
OUTLOOK SUMMARY: Up
TREND CONDITION: Upward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium
MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Currently our next resistance level lie at fresh high formed today – 1.3139 (R1). Rise above it might provide sufficient space for the appreciation towards to next target at 1.3156 (R2). Final resistance for today could be found at 1.3171 (R3). Downwards scenario: Medium-term bias remains negative. Successful retest of our support at 1.3102 (S1) would suggest next targets at 1.3085 (S2) and 1.3069 (S3) in potential.
Resistance Levels: 1.3139, 1.3156, 1.3171
Support Levels: 1.3102, 1.3085, 1.3069
GBPUSD
HIGH: 1.61286 | LOW: 1.61014 | BID: 1.61026 | ASK: 1.61036 | CHANGE: -0.07% | TIME: 08:20:36
OUTLOOK SUMMARY: Up
TREND CONDITION: Upward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Medium
Upwards scenario: Both moving averages support current retracement formation from its initial downtrend. Positive market sentiment might be found above the key resistance level at 1.6130 (R1). Above here is possible appreciation towards to our resistance levels at 1.6148 (R2) and 1.6166 (R3). Downwards scenario: Next support level is seen at 1.6093 (S1), drop below it would suggest next target at 1.6076 (S2) and any further fall would then be targeting 1.6058 (S3).
Resistance Levels: 1.6130, 1.6148, 1.6166
Support Levels: 1.6093, 1.6076, 1.6058
USDJPY
HIGH: 87.807 | LOW: 87.234 | BID: 87.416 | ASK: 87.421 | CHANGE: -0.42% | TIME: 08:20:37
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Medium
Upwards scenario: Next resistance level locates above the local peak at 87.81 (R1). Break here is required to enable next target at 87.95 (R2) and any further rise would then be limited to 88.09 (R3). Downwards scenario: Our initial support level lie at 87.40 (S1). Loss here would enable bearish forces and might expose lower targets at 87.26 (S2) and 87.12 (S3) during the day.
Resistance Levels: 87.81, 87.95, 88.09
Support Levels: 87.40, 87.26, 87.12
Prepared/Published By FXCC Forex Trading Blog.
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