Forex Technical & Market Analysis: January 24 2013

MARKET OVERVIEW

2013-01-24 05:50 GMT

BoE Minutes: MPC voted unanimously to keep the interest rate at 0.5%

BoE Minutes from the MPC monetary policy meeting held on 9 and 10 January and released yesterdday reveal that the Committee voted unanimously in favor of keeping the interest rate at 0.5%. As far as the proposition to maintain the stock of asset purchases at £375 billion is concerned, eight MPC members voted in favor while one voted against. David Miles who voted against preferred to boost the QE program by a further £25 billion to a total of £400 billion.

According to the minutes, the MPC “judged that it was not necessary at this meeting to change either Bank Rate or the size of the asset purchase programme in order to meet the inflation target in the medium term,” as the economic developments throughout December had been “modestly positive”. David Miles argued however that “an easing of monetary policy, in part by discouraging any further appreciation of sterling, could help the rebalancing process and avoid potentially lasting destruction of productive capacity and increases in unemployment.”-FXstreet.com

Forex Economic Calendar

2013-01-24 08:58 GMT | E.M.U. Markit Manufacturing PMI (Jan)
2013-01-24 09:30 GMT | United Kingdom. BBA Mortgage Approvals (Dec)
2013-01-24 13:58 GMT | United States. Markit Manufacturing PMI (Jan)
2013-01-24 23:50 GMT | Japan. BoJ Monetary Policy Meeting Minutes

Forex News

2013-01-24 04:56 GMT | AUD/NZD threatens 1-month low above 1.2450
2013-01-24 04:32 GMT | EUR/JPY above 118.50 on broad Yen weakness
2013-01-24 04:03 GMT | USD/JPY reaches 89.30; 120+pips since London low
2013-01-24 00:53 GMT | EUR/USD resting above 1.3300

TECHNICAL ANALYSIS

EURUSD

HIGH: 1.33246 | LOW: 1.32972 | BID: 1.33166 | ASK: 1.33175 | CHANGE: -0.01% | TIME: 07:49:26

OUTLOOK SUMMARY: Neutral
TREND CONDITION: Sideway
TRADERS SENTIMENT: Bearish
IMPLIED VOLATILITY: Medium

MARKET ANALYSIS – Intraday Analysis
Upwards scenario: Market sentiment looks neutral and upside movement is limited to resistance level at 1.3325 (R1). Surpassing of this level might enable next target at 1.3333 (R2) and any further gain would then be limited to last resistance at 1.3342 (R3). Downwards scenario: Bearish market sentiment could be created if the price manages to overcome our next support level at 1.3294 (S1). A violation here might call for a run towards to lower targets at 1.3289 (S2) and 1.3280 (S3).

Resistance Levels: 1.3325, 1.3333, 1.3342
Support Levels: 1.3294, 1.3289, 1.3280

GBPUSD

HIGH: 1.58439 | LOW: 1.58124 | BID: 1.58324 | ASK: 1.58334 | CHANGE: -0.08% | TIME: 07:49:27

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

Upwards scenario: Sideways formation remains in power on the hourly timeframe. GBPUSD might find buyers above the important resistance level at 1.5849 (R1). Break here would open route towards to our next resistances at 1.5872 (R2) and 1.5894 (R3) on the intraday basis. Downwards scenario: If market failed to establish positive bias, we expect retest of our key support level at 1.5813 (S1). Break here is required to enable initial targets at 1.5791 (S2) and final one at 1.5768 (S3).

Resistance Levels: 1.5849, 1.5872, 1.5894
Support Levels: 1.5813, 1.5791, 1.5768

USDJPY

HIGH: 89.453 | LOW: 88.414 | BID: 89.323 | ASK: 89.328 | CHANGE: 0.8% | TIME: 07:49:28

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

Upwards scenario: Immediate resistance at 89.47 (R1) remains in near-term focus, climb above this level might open way for a stronger move towards to our targets at 89.67 (R2) and 89.86 (R3) in case of sufficient momentum. Downwards scenario: Our focus now shifted to the next support level at 89.10 (S1). Extension of losses below it might push price towards to our targets at 88.89 (S2) and 88.69 (S3) by forming retracement formation from its initial upside penetration.

Resistance Levels: 89.47, 89.67, 89.86
Support Levels: 89.10, 88.89, 88.69

Prepared/Published By FXCC Forex Trading Blog.