Forex Technical & Market Analysis: January 25 2013
MARKET OVERVIEW
2013-01-25 06:10 GMT
The Euro is here to stay; momentum is for higher Euro and lower Yen
The emblematic investor George Soros, speaking at the World Economic Forum in Davo (Switzerland) told the audience that “the euro is now here to stay,” according to Bloomberg. Soros was one of the main detractor of the shared-currency back in June last year, when structural problems in Europe were escalating, peripheral yields were going through the roof, and another long list resulting on a grey outlook for the currency. However, once the ECB President Mario Draghi sent the famous message “the ECB will do whatever it takes to save the euro”, only then, a change in Soros’ opinions started to form, thus he shared with the audience that the immediate crisis is over.
Although he stressed that “there is no time for complacency, and that austerity is not what Europe needs right now” notes Matthew Boesler from Business Insider. Soros added that the next 12 to 24 months will still be “very tense,” as Germany will continue to err on the side of caution when taking bold actions needed to re-assure to investors the survival of the euro. Further comments from Soros, courtesy of Tony Connelly, Europe Editor for RTE News, Ireland’s public service broadcaster: “The momentum is for the euro to rise and the Yen to fall, but it will be resisted by the US. The divergence between the Yen and euro will be aggravated, will badly affect Germany. Europe is an outlier in that it’s not involved in quantitave easing.”-Fxstreet.com
Forex Economic Calendar
N/A | All. World Economic Forum – Davos
2013-01-25 09:30 GMT | United kingdom. Gross Domestic Product (YoY) (Q4)Preliminar
2013-01-25 13:30 GMT | Canada. Bank of Canada Consumer Price Index Core (YoY) (Dec)
2013-01-25 15:00 GMT | United States. New Home Sales (MoM) (Dec)
Forex News
2013-01-25 06:24 GMT | USD/JPY at fresh cycle highs; Japan deflation same as it ever was
2013-01-25 05:49 GMT | EUR/USD communicating a 1.34 breakout?
2013-01-25 05:43 GMT | EUR/GBP threatening fresh 11-month highs above 0.8470
2013-01-25 05:10 GMT | GBP/JPY erases all weekly loses back above 142.50
| AUDUSD | NZDUSD | USDCHF | USDCAD | GBPJPY | EURCHF | GOLD | SILVER |
|---|---|---|---|---|---|---|---|
| 1.04483/494 | 0.83608/621 | 0.92979/993 | 1.00337/350 | 142.726/745 | 1.24291/315 | 1669.46/.74 | 31.65/.67 |
TECHNICAL ANALYSIS
EURUSD
HIGH: 1.33791 | LOW: 1.33497 | BID: 1.33664 | ASK: 1.33671 | CHANGE: -0.06% | TIME: 08:39:31
OUTLOOK SUMMARY: Up
TREND CONDITION: Upward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium
MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Our next resistance level lie at 1.3380 (R1). Rise above it might provide sufficient space for the appreciation towards to next target at 1.3392 (R2). Further market increase above it would face final resistance at 1.3403 (R3).Downwards scenario: We placed our support level right below the local low formed today at 1.3349 (S1). Break here would be essential to begin the short-term bearish momentum. Initial targets could be found at 1.3339 (S2) and 1.3329 (S3).
Resistance Levels: 1.3380, 1.3392, 1.3403
Support Levels: 1.3349, 1.3339, 1.3329
GBPUSD
HIGH: 1.57908 | LOW: 1.57614 | BID: 1.57656 | ASK: 1.57664 | CHANGE: -0.13% | TIME: 08:39:32
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Medium
Upwards scenario: Risk of price appreciation is seen above the next resistance level at 1.5796 (R1). Surpassing of this level would suggest next target at 1.5819 (R2) and any further rise would then be targeting 1.5841 (R3).Downwards scenario: If market holds its downside momentum, we expect attack to the next support level at 1.5756 (S1). Successful retest of this level would open way towards to initial targets at 1.5733 (S2) and 1.5710 (S3).
Resistance Levels: 1.5796, 1.5819, 1.5841
Support Levels: 1.5756, 1.5733, 1.5710
USDJPY
HIGH: 90.685 | LOW: 90.291 | BID: 90.519 | ASK: 90.526 | CHANGE: 0.21% | TIME: 08:39:33
OUTLOOK SUMMARY: Up
TREND CONDITION: Up trend
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Medium
Upwards scenario: Medium-term bias is clearly positive after the sufficient price appreciation yesterday. Fresh high formed today acts now as next resistance level at 90.68 (R1). Above here open way towards to next targets at 90.88 (R2) and then at 91.07 (R3). Downwards scenario: On the slightly short term perspective correction development looks reasonable. Below the fresh low formed today locates our next support level at 90.29 (S1). Break here is required to open a route towards to next targets at 90.08 (S2) and potentially to 89.88 (S3).
Resistance Levels: 90.68, 90.88, 91.07
Support Levels: 90.29, 90.08, 89.88
Prepared/Published By FXCC Forex Trading Blog.
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