Forex Technical & Market Analysis: December 26 2012

MARKET OVERVIEW

2012-12-26 07:10 GMT

Year In Preview: What Will 2013 Bring for the Euro?

Another year has gone by and a lot has happened in the last twelve months, even as the European financial crisis continues to persist. But, taking a look at the next twelve months, and it’s easy to see that things are going to be that much calmer for the single currency in 2013. Here are some things to consider when January 1st rolls around. Shift in ECB Policy With European Union growth remaining lower for most of 2012, the European Central Bank has refrained from cutting rates amid persistently higher inflation. Although not rampant, the pace of consumer prices has risen by 2.2-2.5% annually in 2012 – a cause for at least some concern and a stay on rates. However, with inflation set to decline once again on slower growth, ECB policymakers may be at a favorable point in time to execute a rate cut of 25 basis points. The notion is being supported by growth forecasts by the central bank that pit EU contraction at about 0.3% for all of next year.

The rate cut would be bearish for the Euro in the short term, but at least support the chance for growth in the wider EU region as periphery economies are expected to contribute handsomely to the decline in overall expansion. – FXstreet.com

Forex Economic Calendar

2012-12-26 13:55 GMT | USA.Redbook index (YoY)
2012-12-26 13:55 GMT | USA.Redbook index (MoM)
2012-12-26 14:00 GMT | USA.S&P/Case-Shiller Home Price Indices (YoY) (Oct)
2012-12-26 15:00 GMT | USA.Richmond Fed Manufacturing Index (Dec)

Forex News

2012-12-24 19:27 GMT | EUR/USD ends the day unchanged
2012-12-24 18:12 GMT | GBP/USD to end the year around 1.63 – Rabobank
2012-12-24 15:21 GMT | EUR/JPY hits 112.00 as investors price in comments from Japan
2012-12-24 15:06 GMT | AUD/USD trading near calculated support at 1.0385/87

TECHNICAL ANALYSIS

EURUSD

HIGH: 1.32332 | LOW: 1.31712 | BID: 1.31783 | ASK: 1.31787 | CHANGE: 0% TIME: 08:23:45

 
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Low

MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Next resistance level at 1.3217 (R1) locates above the local peak. Break here is required to enable next target at 1.3231 (R2) and any further rise would then be limited to 1.3246 (R3). Downwards scenario: Loss of next support at 1.3162 (S1) might drive market price towards to the next targets at 1.3148 (S2) and 1.3134 (S3).

Resistance Levels: 1.3217, 1.3231, 1.3246
Support Levels: 1.3162, 1.3148, 1.3134

GBPUSD

HIGH: 1.62061 | LOW: 1.61009 | BID: 1.61202 | ASK: 1.61212| CHANGE: 0% | TIME: 08:23:46

 
OUTLOOK SUMMARY: Down
TREND CONDITION: Downward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Low

Upwards scenario: Any upwards formation today is limited to resistive measures at 1.6149 (R1). A break above it would suggest next target at 1.6165 (R2). If the price holds its momentum we can expect a further rise towards to 1.6177 (R3). Downwards scenario: Further decline is possible below the next support level at 1.6109 (S1). Expected targets locate at 1.6097 (S2) and XX1.6084 (S3) in potential.

Resistance Levels: 1.6149, 1.6165, 1.6177
Support Levels: 1.6109, 1.6097, 1.6084

USDJPY

HIGH: 84.865 | LOW: 84.322 | BID: 84.785 | ASK: 84.793 | CHANGE: 0% | TIME: 08:23:48

OUTLOOK SUMMARY: Up
TREND CONDITION: Upward penetration
TRADERS SENTIMENT: Bullish
IMPLIED VOLATILITY: Low
 
Upwards scenario: The short- term tendency is bullish as both moving averages are pointing up. Next resistance level is seen at 84.89 (R1), clearance here would open way for strengthening towards to next targets at 85.15 (R2) and 85.36 (R3). Downwards scenario: Retracement development is limited to the next support level at 84.61 (S1). Clearance here would open road towards to possible targets, located at 84.45 (S2) and 84.33 (S3).

Resistance Levels: 84.89, 85.15, 85.36
Support Levels: 84.61, 84.45, 84.33

Prepared/Published By FXCC Forex Trading Blog.