Forex Technical & Market Analysis: January 09 2013

MARKET OVERVIEW

2013-01-09 05:40 GMT

Eurozone crisis still far from over

Eurozone unemployment reached a record high of 11.8% in November, the European Commission reported on Tuesday. Data also showed an increase in youth unemployment to 24.4%. This proves that the crisis in the area is still far from over, despite recent opinions to the contrary (including European Commission head Jose Manuel Barroso’s hopeful declarations this morning). Martin van Vliet from ING, who notices this latest wave of optimism among Eurozone consumers and businesses suggests that “with more fiscal austerity in the pipeline, the debt crisis still unresolved, and unemployment rising (and hitting a fresh record high of 11.8% in November), consumers and hence businesses still have plenty to worry about. Moreover, despite the recent improvement, Eurozone economic sentiment remains in recession territory.”

German Chancellor Angela Merkel held a meeting with Greek PM Antonis Samaras in Berlin on Tuesday, during which the Greek leader assured that his country was delivering on promises to implement austerity measures and was carrying out reforms in return for European aid. “We are trying to win back credibility, on the part of the people of Europe and on the part of the markets,” Samaras told reporters during a press conference. Angela Merkel praised Greece’s efforts to reduce its debt load so far and expressed her interest in the progress of implementation of the previously agreed austerity measures. She also warned that 2013 will be a tough year for the Eurozone. “We must agree on stronger economic policy cooperation by June this year, and there is plenty of work ahead of us,” she said.-FXstreet.com

Forex Economic Calendar

2013-01-09 09:30 GMT | United Kingdom. Goods Trade Balance (Nov)
2013-01-09 10:00 GMT | E.M.U. Gross Domestic Product s.a. (QoQ) (Q4)
2013-01-09 11:00 GMT | Germany. Industrial Production s.a. w.d.a. (YoY) (Nov)
2013-01-09 13:15 GMT | Canada. Housing Starts s.a (YoY) (Dec)

Forex News

2013-01-09 05:17 GMT | EUR/USD lacks stimulus; earnings, Fed speeches, ECB eyed
2013-01-09 05:05 GMT | GBP/USD looking again toward 1.6000
2013-01-09 04:13 GMT | EUR/JPY below MoF Aso ESM level of 114.55-60
2013-01-09 02:36 GMT | USD/JPY moves above descending trend line; hits 87.50

TECHNICAL ANALYSIS

EURUSD

HIGH: 1.30933 | LOW: 1.30671 | BID: 1.30843 | ASK: 1.30849 | CHANGE: 0.03% | TIME: 08:18:43

OUTLOOK SUMMARY: Up
TREND CONDITION: Upward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium

MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Appreciation above the 1.3103 (R1) might boost the upside pressure. Next visible resistance levels are expected at 1.3118 (R2) and 1.3134 (R3) in potential. Downwards scenario: Fresh low, formed today is pointing to key short-term support level at 1.3067 (S1). Decline below it would suggest next intraday target at 1.3052 (S2) and any further easing would then be targeting 1.3036 (S3).

Resistance Levels: 1.3103, 1.3118, 1.3134
Support Levels: 1.3067, 1.3052, 1.3036

GBPUSD

HIGH: 1.60684 | LOW: 1.60368 | BID: 1.60533 | ASK: 1.60543 | CHANGE: 0.01% | TIME: 08:18:44

OUTLOOK SUMMARY: Down
TREND CONDITION: Sideway
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Medium

Upwards scenario: Our retail trading market sentiment indicator shows, that market participants are bullish. Penetration above the 1.6069 (R1) might lead to the protective orders execution and drive market price towards to next targets at 1.6088 (R2) and 1.6105 (R3). Downwards scenario: Next support level stays at 1.6036 (S1). Break here would suggest next target at 1.6020 (S2) and any further fall would then be limited by last support at 1.6003 (S3).

Resistance Levels: 1.6069, 1.6088, 1.6105
Support Levels: 1.6036, 1.6020, 1.6003

USDJPY

HIGH: 87.543 | LOW: 86.829 | BID: 87.387 | ASK: 87.393 | CHANGE: 0.41% | TIME: 08:18:45

OUTLOOK SUMMARY: Up
TREND CONDITION: Upward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Medium

Upwards scenario: The short-term tendency for the price is oriented to the upside. Our next resistance level is placed above the local peak at 87.56 (R1). Strengthening above it would point to resistive structure at 87.71 (R2) onto 87.86 (R3). Downwards scenario: If the pair gains momentum today on the downside and overcome our next support level at 87.22 (S1) then intraday outlook would turn into negative territory. Possible targets could be exposed at 87.07 (S2) and 86.92 (S3).

Resistance Levels: 87.56, 87.71, 87.86
Support Levels: 87.22, 87.07, 86.92

Prepared/Published By FXCC Forex Trading Blog.