Forex Technical & Market Analysis: December 24 2012
MARKET OVERVIEW
2012-12-24 07:15 GMT
Boehner’s ‘Plan B’ bill vote canceled
News has hit the newswires that there will be no vote on ‘Plan B’ this evening due to lack of Republican support. Speaker John Boehner has pulled his own bill, and his office has just released a statement that says, in part: “The House did not take up the tax measure today because it did not have sufficient support from our members to pass. Now it is up to the President to work with Senator Reid [(D)] on legislation to avert the fiscal cliff.” This is significant because the Speaker could not persuade his own Republican members to back his plan against President Obama’s offers and proposals on the matter. The US dollar is well bid across the board on this news, as market participants flee to safety.
The Republican-lead House of Representatives on Capitol Hill is moving ahead with a bill aimed at pressuring President Obama for a “fiscal cliff” deal. A second vote on taxes is expected later this evening; the House is in recess for now, but the Ways and Means staff is said to be on the floor ready for the tax debate to begin. In the end, even if House Speaker John Boehner’s “Plan B” were to pass, political analysts say that it stands no chance of being accepted by the Democratic-lead Senate or by the President. Time is quickly running out for US lawmakers to reach a deal to prevent a self-inflicted economic recession. At the time of writing, the U.S. dollar is finding buying interest across the board, likely underpinned by this sour mood surrounding the “fiscal cliff” developments, and on news that S&P has just downgraded Cyprus’ foreign long-term issuer credit rating to CCC+ from B. – FXstreet.com
Forex Economic Calendar
2012-12-24 02:00 GMT | New Zealand.M3 Money Supply (YoY) (Nov)
2012-12-24 11:00 GMT | Ireland. Retail Sales (MoM) (Nov)
2012-12-24 11:00 GMT | Ireland.Retail Sales (YoY) (Nov)
2012-12-24 23:50 GMT | Japan.Corporate Service Price (YoY) (Nov)
Forex News
2012-12-24 03:09 GMT | EUR/USD quiet below 1.32
2012-12-24 02:31 GMT | AUD/JPY below 88 +11% YTD
2012-12-24 02:00 GMT | USD/JPY looking for upside break of 84.60
2012-12-24 00:45 GMT | AUD/USD below 1.04 ahead of Christmas Eve
| AUDUSD | NZDUSD | USDCHF | USDCAD | GBPJPY | EURCHF | GOLD | SILVER |
|---|---|---|---|---|---|---|---|
| 1.04142/153 | 0.82275/295 | 0.91588/603 | 0.99307/319 | 136.400/417 | 1.20786/795 | 1662.03/.33 | 30.22/.24 |
TECHNICAL ANALYSIS
EURUSD
HIGH: 1.31851 | LOW: 1.31712 | BID: 1.31815 | ASK: 1.31825 | CHANGE: 0% | TIME: 08:04:49
OUTLOOK SUMMARY: Downward penetration
TREND CONDITION: Up trend
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Low
MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Next on tap, resistance level at 1.3208 (R1). A break higher could open the door for an attack to next target at 1.3233 (R2) and final immediate resistance is seen at 1.3255 (R3). Downwards scenario: On the other hand, a dip below the support level at 1.3149 (S1) would clear the way towards to next targets at 1.3122 (S2) and 1.3097 (S3) in potential.
Resistance Levels: 1.3208, 1.3233, 1.3255
Support Levels: 1.3149, 1.3122, 1.3097
GBPUSD
HIGH: 1.61745 | LOW: 1.61424 | BID: 1.61733 | ASK: 1.61746 | CHANGE: 0.04% | TIME: 08:04:50
OUTLOOK SUMMARY: Up
TREND CONDITION: Up trend
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Low
Upwards scenario: Market sentiment is clearly bearish and upside movement is limited to resistance level at 1.6194 (R1). Surpassing of this level might enable next target at 1.6215 (R2) and any further gain would then be limited by last resistance at 1.6235 (R3). Downwards scenario: Break below the support at 1.6148 (S1), would signal an end of retracement phase and open way for downtrend formation on the medium-term perspective. Possible targets could be found at 1.6129 (S2) and 1.6109 (S3).
Resistance Levels: 1.6194, 1.6215, 1.6235
Support Levels: 1.6148, 1.6129, 1.6109
USDJPY
HIGH: 84.494 | LOW: 84.322 | BID: 84.360 | ASK: 84.366 | CHANGE: 0.14% | TIME: 08:04:51
OUTLOOK SUMMARY: Up
TREND CONDITION: Up trend
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Low
Upwards scenario: On the bigger picture trend still is pointing up. Targets at 84.57 (R2) and 84.69 (R3) might be attractive for the uptrend penetration if the price manages to break our next resistance level at 84.45 (R1). Downwards scenario: In regard to the descending movement, opportunities for bearish oriented traders are seen below the support level at 84.10 (S1). Loss here would enable next supports at 84.00 (S2) and 83.88 (S3).
Resistance Levels: 84.45, 84.57, 84.69
Support Levels: 84.10, 84.00, 83.88
Prepared/Published By FXCC Forex Trading Blog.
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